Franchise Group enters exclusive talks over Kohl's sale (updated)

Franchise

07/06/2022 01:50

(Adds Franchise statement, details and background)
    June 6 (Reuters) - Kohl's Corp  KSS.N  has entered exclusive
negotiations with retail store operator Franchise Group Inc
 FRG.O  over a potential sale of the department store chain,
valuing it at nearly $8 billion, the companies said late on
Monday.
    The bid of $60 per share constitutes a premium to Kohl's
closing price of $42.12 on Monday, giving it a market value of
about $5.4 billion.
    Franchise Group, owner and operator of retail stores such as
The Vitamin Shoppe and Buddy's Home Furnishings, said the
companies have entered into a three-week-long exclusive
discussion.   
    "The purpose of the exclusive period is to allow FRG and its
financing partners to finalize due diligence and financing
arrangements and for the parties to complete the negotiation of
binding documentation," Kohl's said.
    Kohl's said the deal is subject to board approval and
provided no assurance that an agreement would be finalised.
    Several bidders, including private-equity firm Sycamore
Partners and J.C. Penney investors Simon Property Group Inc
 SPGS.N  and Brookfield Asset Management Inc  BAMa.TO  had
submitted competing offers for Kohl's recently.  urn:newsml:reuters.com:*:nL2N2XG2LK
     The U.S. department store chain was under pressure after
activist investors Macellum Advisors GP LLC and Engine Capital
LP called on Kohl's earlier this year to sell itself.
 urn:newsml:reuters.com:*:nL1N2U512S
    
    

 (Reporting by Ann Maria Shibu in Bengaluru; Editing by Sherry
Jacob-Phillips)
 ((AnnMaria.Shibu@thomsonreuters.com; +1 646 223 8780;  + 91 80
6749 2795;))