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06:03aKOHLS CORP : Regulation FD Disclosure (form 8-K)
05/24KOHL'S ALERT : Bragar Eagel & Squire, P.C. is Investigating Kohl's Corporation on Behalf of Kohl's Stockholders and Encourages Investors to Contact the Firm
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Kohl's under fresh pressure as Sycamore expresses interest after Acacia made bid

01/23/2022 | 09:20pm EDT
A sign marks a Kohl's store in Medford

(Reuters) -U.S. department store Kohl's Corp may soon receive a second takeover offer as private equity firm Sycamore Partners prepares to make a bid only days after a consortium backed by activist investment firm Starboard Value proposed buying the company, three sources familiar with the matter said on Sunday.

Sycamore Partners has reached out to Kohl's about a potential offer that would value the company around $9 billion, one source said. The firm is willing to pay at least $65 a share in cash for the company, the source said.

The news comes two days after Acacia Research, which is backed by Starboard, offered to pay $64 a share for Kohl's, confirming a Reuters report last week that Acacia had reached out to the company to express its interest in a takeover.

There are no guarantees that Sycamore Partners will make a bid or that a deal will be reached with either Sycamore or Acacia, the sources said. Bloomberg first reported Sycamore's interest on Sunday and the Wall Street Journal reported the Acacia bid on Friday.

Representatives for Sycamore, Acacia and Kohl's did not immediately respond to requests for comment.

Sycamore's interest in Kohl's illustrates investors ongoing interest in retailers and the troubles that brick and mortar retailers are facing as the pandemic has largely prompted customers to shift buying habits in favor of online retailers.

Kohl's has been facing pressure from activist investors to perform better for roughly a year and their ongoing unhappiness has become more visible in the last weeks after the company's share price climbed only 5% in the last year.

Last week activist investment firm Macellum Advisors, which owns 5% of Kohl's stock, told the company to explore strategic options, including a sale, and warned it planned to nominate directors to its board. Late last year activist firm Engine Capital also said it wants Kohl's to consider a sale.

Macellum's fresh pressure comes less than a year after it, along with two other activists, reached a settlement that saw Kohl's add three new directors to the board. Macellum called 2021 "another lost year" at Kohl's and criticized the stock price's 22% drop from April through last week.

Kohl's said last week its "strategy is producing results" and management and the board "refuse to be distracted" from delivering stronger results for all investors.

Sources said Acacia and Starboard, one of the industry's most respected and busiest activist investors, would likely work with Oak Street Real Estate Capital to try and sell off Kohl's real estate holdings to raise additional capital for a transaction. Kohl's has historically been opposed to sale-leasebacks of its real estate.

(Reporting by Svea Herbst-Bayliss in Boston and Jaiveer Singh Shekhawat in Bengaluru; Additional reporting by Bhargav Acharya; Editing by Andrea Ricci and Chris Reese)

By Svea Herbst-Bayliss

© Reuters 2022
06:03aKOHLS CORP : Regulation FD Disclosure (form 8-K)
05/24KOHL'S ALERT : Bragar Eagel & Squire, P.C. is Investigating Kohl's Corporation on Behalf o..
05/23GLOBAL MARKETS LIVE : Tesla, Kohl's, Apple, JPMorgan, Bank of America...
05/23Citigroup Downgrades Kohl's to Neutral From Buy, Adjusts Price Target to $39 From $55
05/20Wall Street ends mixed after punishing week
05/20Kohl's Board Accused by Activist Investor Macellum of Withholding Material Information ..
05/20Kohl's Activist Shareholder Macellum Advisors Accuses Board of Withholding Material Inf..
05/20Cowen Adjusts Kohl's Price Target to $60 from $75, Keeps Outperform Rating
05/20Deutsche Bank Adjusts Kohl's Price Target to $68 From $85, Maintains Buy Rating
05/20Morgan Stanley Lowers Price Target for Kohl's to $38 From $42, Maintains Underweight Ra..
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Financials (USD)
Sales 2023 18 584 M - -
Net income 2023 809 M - -
Net Debt 2023 3 316 M - -
P/E ratio 2023 5,54x
Yield 2023 5,59%
Capitalization 4 652 M 4 652 M -
EV / Sales 2023 0,43x
EV / Sales 2024 0,40x
Nbr of Employees 99 000
Free-Float 34,9%
Duration : Period :
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Technical analysis trends KOHL'S CORPORATION
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Income Statement Evolution
Mean consensus HOLD
Number of Analysts 16
Last Close Price 36,18 $
Average target price 51,57 $
Spread / Average Target 42,5%
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Managers and Directors
Michelle D. Gass Chief Executive Officer & Director
Jill Timm Executive Vice President-Finance
Peter Boneparth Chairman
Paul J. Gaffney Chief Technology Officer & Senior Executive VP
Stephanie A. Streeter Independent Director
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