The franchise group, which owns and operates retail outlets like The Vitamin Shoppe and Buddy’s Home Furnishings, has entered the race for Kohl’s with a $9 billion indicative offer, three people familiar with the matter said.
The Franchise Group has told Kohl’s that it would be willing to pay $69 per share to acquire the department store chain, subject to due diligence, the sources said.
However, the Franchise Group’s offer is not the winning bid. Luxury department store operator Hudson’s Bay Company has indicated it is willing to pay at least $70 a share for Kohl’s, the sources said. Kohl’s shares ended Monday’s trading at $57.24.
The sources declined to be identified as the discussions are private.
Still, the franchise group’s entry into the process gives Kohl’s more options as it considers a sale amid pressure from activist hedge funds.
The buyer must secure committed financing to pay off Kohl’s debt, which totaled $6.8 billion at the end of 2021, including operating leases.
The franchise group has a market value of $1.6 billion and had $1.9 billion in long-term debt at the end of December.
https://nypost.com/2022/04/12/kohls-gets-9-billion-bid-from-owner-of-vitamin-shoppe/ Kohl’s Receives $9 Billion Offer From Vitamin Shoppe Owner