Kohl's Shares Soared 13% in Premarket Trading

Tiger Newspress2022-06-07

Kohl's is in advanced talks to be sold, valuing retailer at around $8 billion.Kohl's Corp. is in advanced talks to be sold in a deal that could value the department-store chain at roughly $8 billion, according to people familiar with the matter.

The Wisconsin company recently entered exclusive talks with retail holding company Franchise Group Inc., the people said. The exclusivity period is expected to last for several weeks, so a deal isn't imminent, and there still may not be one.

Franchise Group, which owns brands including Vitamin Shoppe, had offered around $60 a share for Kohl's, The Wall Street Journal reported last week. It has been vying for the company in competition with private-equity firm Sycamore Partners, which put in a bid in the mid-$50s a share.

Shares in Kohl's, which has said it was exploring strategic options, have fallen about 15% so far this year, buffeted by market turmoil and fears of an economic slowdown, a decline that has been mitigated by the possibility of a deal.

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