William Huston, AIF®, AIFA®

Kohl's is considering bids from two companies to acquire the company

William Huston, AIF®, AIFA®

William Huston, AIF®, AIFA®

Kohl's is considering bids from two companies to acquire the company.

Kohls confirmed that it received offers from two firms looking to take over the company. CNBC reports that Sycamore, the private equity firm, wants to pay about $65 per share in Kohls. The news came shortly after Acacia Research offered to pay about $64 per share for the supermarket chain. The two groups are said to be aiming to sell Kohls properties to raise cash through a partnership with Oak Street Real Estate Capital.

In a public assertion Monday, Kohl's acknowledged that it received letters of interest from 2 pieces seeking to obtain the company, however it commented that it would not comment on the matters until it "determines that it is in the best interest of shareholders to do so." "Kohl's Board of Directors will determine the course of action it assumes is in the best interests of the company and its shareholders," Kohl's said in a statement.

Following the news on Monday morning, Kohl's shares rose more than 33%. In recent months, Kohl's has faced increasing pressure from investors to make relevant changes to its business composition in order to improve productivity and cost to shareholders. Clearly last week, Macellum Advisors GP, LLC, which holds nearly 5% of Kohl's outstanding common stock, sent an open letter to other shareholders on Tuesday to denounce Kohl's for "mismanagement" of the trade and for "failing to exercise overriding operational, financial and strategic improvements."

The letter mentioned that Kohl's had "produced some of the worst revenue numbers in its retail peer set since the economy began to reopen in 2021." In response to the letter, Kohl's mentioned in a informed that it "has continued to engage with Macellum from consensus" and is "disappointed with the path they have taken and the unfounded speculation in their announcement and letter."

In early December, investor Engin Capital LP, which owns a 1% stake in Kohls, asked the company to separate its physical business from its e-commerce business. Engin has also asked the company to conduct a market test to determine how much certain backers will pay the company.

"With leadership unable to meet costs through operational excellence and long-term strategic initiatives, it is time for the Board of Directors to recognize the fact that the mass market hates Coles in its current form," Engin wrote in the letter. "Even the most patient long-term shareholder cannot expect to tolerate the punitive deficiencies and permanent cost-cutting seen at Kohls."




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