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• Franchise is proposing to buy the retailer for $60 per share
Kohl’s Corp (NYSE: KSS) said it has entered into exclusive negotiations with Franchise Group (NASDAQ: FRG) in relation to acquire the retailer.
Kohl’s said the company is proposing to buy the retailer for $60 per share, valuing it at roughly $8 billion.
Shares of Kohl’s rose more than 9% on Tuesday to close at $45.59 while Franchise shares surged nearly 5%.
Kohl’s, which entered an exclusive period of three-weeks, said the transaction remains subject to approvals of the boards of directors of both companies.
“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,” the retailer said.
Kohl’s also said there was no assurance that any agreement will be reached or “a transaction will be agreed or completed on the terms set forth above or otherwise.”
Picture Credits: Getty Images
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