Kohl’s May Have Second Suitor in Takeover Bid

Just days after receiving a takeover offer from Starboard Value, Kohl’s could see a second takeover offer from private equity firm Sycamore Partners, Reuters reported Sunday (Jan. 23).

Citing three sources familiar with the matter, Reuters said that Sycamore has reached out to inquire about buying Kohl’s in a bid to value it at around $9 billion.

The company is reportedly willing to pay at least $65 per share. However, there’s currently no guarantee that Sycamore will make a bid or that there will be any deal to buy Kohl’s from either group.

Reuters writes that Sycamore’s interest in Kohl’s shows that there is ongoing interest in retailers. Brick-and-mortar stores have faced problems in the pandemic and seen power shifting to those who deal in eCommerce.

Additionally, Kohl’s has seen pressure recently because of its share price troubles, which only climbed 5% in the past year.

Macellum Advisors, which owns 5% of Kohl’s stock, said last week that the retailer should look at possibly selling or other strategic options. Macellum said it planned to nominate directors to its board. In December, Engine Capital, which owns 1% of Kohl’s stock, said that it also wanted the company to consider a sale.

Kohl’s added three new directors to its board as of last year because of a settlement with Macellum and other activist investors.

PYMNTS recently reported about a $9 billion offer from Starboard-led Acacia Research, who reportedly said it would be able to get financing from bankers for the bid — though, again, there wasn’t any assurance yet as to whether this would happen or whether Kohl’s would go for the deal.

See also: Kohl’s Sees $9B Bid for Sale

Acacia is not terribly well known and has a market value of $215 million, but the group told Kohl’s it had high confidence about being able to get a debt financing package for parts of the bid.

The group could also end up selling the company’s real estate to another party as a way to ease the transaction overall.