Kohls Corp. Negotiates Sale to Operator of Vitamin Shoppe, Pet Supplies Plus and Other Stores | Business News | Detail


MENOMONEE FALLS – Kohl’s Corp. is in negotiations to sell the business to the group that runs the Vitamin Shoppe stores.

The Milwaukee Journal Sentinel reported that the Menominee Falls-based retailer said Monday it had entered into negotiations with Franchise Group Inc. to acquire the company at $60 per share. This translates to approximately $8 billion.

Franchise Group released a statement saying it plans to fund the purchase by issuing $1 billion in debt and using the value of Kohl’s real estate to fund the rest.

Kohl shareholders would receive $60 in cash for each of their shares. The price is a nearly 43% premium to Kohl’s closing stock price of $42.12 during regular stock trading Monday.

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In addition to Pet Supplies Plus and The Vitamin Shoppe, Franchise Group brands include American Freight, Badcock Home Furniture and more, Buddy’s Home Furnishings and Sylvan Learning.

Kohl’s has more than 1,100 stores and about 100,000 employees nationwide, including about 8,000 in Wisconsin. About half of them work at the Menominee Falls headquarters.

Kohl’s has come under pressure from activist investors to improve the company’s performance and stock price or sell the company outright. The sale would be subject to the approval of the board of directors of both companies.

Laura J. Boyer