Kohl’s under fresh pressure as Sycamore expresses interest after Acacia made bid By Reuters

By Svea Herbst-Bayliss

(Reuters) -U.S. division retailer Kohl's Corp (NYSE:) might quickly obtain a second takeover provide as non-public fairness agency Sycamore Partners prepares to make a bid solely days after a consortium backed by activist funding agency Starboard Value proposed shopping for the corporate, three sources acquainted with the matter mentioned on Sunday.

Sycamore Partners has reached out to Kohl's a few potential provide that will worth the corporate round $9 billion, one supply mentioned. The agency is prepared to pay a minimum of $65 a share in money for the corporate, the supply mentioned.

The information comes two days after Acacia Research, which is backed by Starboard, provided to pay $64 a share for Kohl's, confirming a Reuters report final week that Acacia had reached out to the corporate to specific its curiosity in a takeover.

There are not any ensures that Sycamore Partners will make a bid or {that a} deal will likely be reached with both Sycamore or Acacia, the sources mentioned. Bloomberg first reported Sycamore's curiosity on Sunday and the Wall Street Journal reported the Acacia bid on Friday.

Representatives for Sycamore, Acacia and Kohl's didn't instantly reply to requests for remark.

Sycamore's curiosity in Kohl's illustrates traders ongoing curiosity in retailers and the troubles that brick and mortar retailers are dealing with because the pandemic has largely prompted clients to shift shopping for habits in favor of on-line retailers.

Kohl's has been dealing with strain from activist traders to carry out higher for roughly a yr and their ongoing unhappiness has turn into extra seen within the final weeks after the corporate's share value climbed solely 5% within the final yr.

Last week activist funding agency Macellum Advisors, which owns 5% of Kohl's inventory, informed the corporate to discover strategic choices, together with a sale, and warned it deliberate to appoint administrators to its board. Late final yr activist agency Engine Capital additionally mentioned it desires Kohl's to contemplate a sale.

Macellum's contemporary strain comes lower than a yr after it, together with two different activists, reached a settlement that noticed Kohl's add three new administrators to the board. Macellum referred to as 2021 "another lost year" at Kohl's and criticized the inventory value's 22% drop from April via final week.

Kohl's mentioned final week its "strategy is producing results" and administration and the board "refuse to be distracted" from delivering stronger outcomes for all traders.

Sources mentioned Acacia and Starboard, one of many business's most revered and busiest activist traders, would probably work with Oak Street Real Estate Capital to attempt to unload Kohl's actual property holdings to boost extra capital for a transaction. Kohl's has traditionally been against sale-leasebacks of its actual property.