Kohl’s Corporation announced yesterday that following the receipt of final proposals, the Kohl’s Board of Directors has entered into exclusive negotiations with Franchise Group, Inc. (“FRG”), a holding company of a collection of market-leading and emerging brands, for a period of three weeks in relation to FRG’s proposal to acquire the Company for $60.00 per share. The purpose of the exclusive period is to allow FRG and its financing partners to finalize due diligence and financing arrangements and for the parties to complete the negotiation of binding documentation.
FRG is an American publicly traded holding company that acquires and manages mainly franchise companies. Its other brands include The Vitamin Shoppe, Pet Supplies Plus, American Freight, Buddy’s Home Furnishings, Sylvan Learning, Badcock Home Furniture & More, and Wag N Wash Stores.
The transaction remains subject to approvals of the Boards of Directors of both companies. There can be no assurances that any agreement will be reached or that a transaction will be agreed or completed on the terms set forth above or otherwise. The company will have no further comment until an agreement is reached or the discussions are terminated.
A report back in April by the New York Post stated that Brookfield Asset Management, the owners of J.C. Penney, was considering buying the brand, then, in May, Reuters reported that Chief Marketing Officer Greg Revelle and Chief Merchandising Officer Doug Howe were both leaving the retailer.