Kohl’s Corporation announced on Monday that it has entered into exclusive negotiations with retail holding company Franchise Group, to acquire the company for $60 per share.
The transactions would value Kohl’s roughly at $8 billion. It remains subject to approvals of the BODs of both companies, as the Franchise Group is working with Oak Street Real Estate Capital to finance the deal mostly through real estate.
There can be no assurances that any agreement will be reached. In this period of three weeks Franchise Group will be allowed to own the Vitamin Shoppe and Buddy’s Home Furnishings, and its financing partners to finalize due diligence and financing arrangements.
The American department store’s shares closed Monday at $42.12, giving the company a market value of about $5.4 billion. In late January Kohl’s shares hit a 52 week high of $64.38.