Local

Kohl’s stock rises on takeover talks with franchise group

Kohl’s shares are up more than 12% ahead of Tuesday’s opening bell after the retailer said it was in advanced talks for an approximately $8 billion sale.

The Wisconsin chain announced late Monday that it was in a three-week exclusive acquisition phase with the owner of Vitamin Shoppe for $60 a share.

The buyer, Franchise Group Inc., which focuses on franchises, will make the final financing arrangements and conduct due diligence before signing the deal during this period.

Last month, Kohl’s CEO Michelle Gass said the company had done so receive several offers from parties who want to buy the company. At the time, the department store chain said its board was working with Goldman Sachs to explore strategic alternatives, which included working with 25 parties. The board had requested the submission of fully financed final offers.

advertisement

In May, Kohl’s also announced that its shareholders were rejecting all 10 board members nominees driven by activist investor Macellum Advisors. The hedge fund has urged Kohl’s to explore strategic options, including a sale, if the chain doesn’t take action to improve its business and increase its share price. Macellum Advisors, which owns 5% of Kohl’s stock, had drawn up its own list of board candidates.

Kohl’s has more than 1,100 stores in 49 states.

The potential deal between Kohl’s and the Franchise Group has yet to be approved by the boards of both companies.

Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, transcribed or redistributed without permission.

https://www.local10.com/business/2022/06/07/kohls-stock-surges-on-buyout-talks-with-franchise-group/ Kohl’s stock rises on takeover talks with franchise group

Sarah Y. Kim

InternetCloning is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – admin@internetcloning.com. The content will be deleted within 24 hours.

Related Articles

Back to top button