Apollo in talks to provide up to $2 billion in financing for Kohl’s sale
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© Reuters. FILE PHOTO: The Kohl’s label is seen on a shopping basket in a Kohl’s department store in the Brooklyn borough of New York, U.S., January 25, 2022. REUTERS/Brendan McDermidBy Chibuike Oguh
(Reuters) – Apollo Global Management Inc (NYSE:) is in negotiations to lend up to $2B in financing to the acquisition of Kohl’s Corp, a department store chain (NYSE:) by Franchise Group (NASDAQ;) a person who was familiar with this matter claimed.
According to a source, discussions between Apollo Franchise and Franchise remain in an early stage. No agreement has yet been reached. Apollo spokeswoman declined comment. The New York Post reported the news first.
Franchise Group, the operators of retailers such as The Vitamin Shoppe or Buddy’s Home Furnishings said Monday that they have entered into exclusive negotiations to purchase Kohl’s. The deal will see Kohl’s purchased for $60 per share. The company is valued at almost $8 billion. Kohl’s stock closed at $46.32 per Share on Thursday. This gives it an estimated valuation of $6 billion.
Franchise Group’s bid to purchase Kohl’s beat other offers from Sycamore Partners and Brookfield Asset Management Inc. (NYSE:).
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