Acacia Research contacts Kohl's to explore bid for retailer, sources say

Acacia Research

18/01/2022 15:54

(Adds details on possible deal)
    By Svea Herbst-Bayliss
    BOSTON, Jan 18 (Reuters) - Acacia Research  ACTG.O , which
is backed by activist investor Starboard Value, has reached out
to Kohl's Corp  KSS.N  to express its interest in making a bid
for the retailer, two sources familiar with the matter said.
    Acacia, which buys businesses in sectors such as technology
and healthcare, would likely be the lead investor in a bid with
Starboard backing it, the sources said.
    The outreach comes at a time when hedge fund Macellum
Advisors GP LLC is stepping up pressure on Kohl's to add new
board members and hire bankers to consider a sale if the
retailer does not improve its business to boost its stock price.
    Kohl's stock price is trading up 2.13% on a day when the
broader market is down.
    There is no guarantee that any transaction will happen, said
the sources, who are not permitted to discuss the private
outreach publicly.
    As a result of its partnership with Starboard, Acacia has
roughly $1 billion in available capital and Starboard would
provide additional capital to support a bid, the sources added.
    Starboard and Acacia did not immediately respond to requests
for comment. A Kohl's representative said the company cannot
comment on "rumors and speculation."
    The sources said that Starboard and Acacia would likely work
with Oak Street Real Estate Capital LLC to try and sell off
Kohl's real estate holdings to raise additional capital for a
transaction.
    Kohl's real estate holdings are estimated to be worth
between $7 billion and $8 billion.

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Engine Capital pushes Kohl's to review sale, separate e-commerce
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 (Reporting by Svea Herbst-Bayliss; Editing by Will Dunham)
 ((svea.herbst@thomsonreuters.com; +617 856 4331))