Kohl’s Stock Jumps 14% as Buyout Interest Increases, Who’s Looking?

Trade KSS Stock Your Capital Is At Risk
Ollie Martin
Updated: 16 Mar 2022

Key points:

  • KSS stock soared over 14% in mid-market trading, following news of potential bids
  • Canadian retailer Hudson Bay and Equity firm Sycamore are two of the interested parties
  • Rumours of bids at high $60s per share caused stock to shoot up and trade around the $60 mark

Shares of US staple retailer chain Kohls (NYSE: KSS) shot up over 14% in mid-market trading on Wednesday, after rumors surrounding a potential buyout surfaced. Reports dictate that the popular store chain is under the keen eye of the Canadian department store chain Hudson Bay; who is apparently considering a sizeable bid for the company.

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It isn’t just Hudson Bay who are interested though, private equity firm Sycamore Partners is apparently also considering a high-value bid; but no intention has been guaranteed. 

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The most recent report outlines that Sycamore and Hudson Bay were planning bids priced around the high $60s per share, giving a rough valuation of Kohls standing at more than $9B. Following the report, shares of Kohl’s soared to above $60 levels with a more than 14% jump.

The report is definitely more than rumors; a Kohl’s spokesperson claimed that the “board’s engagement with potential bidders is robust and ongoing”, meaning that although interest has been registered, nothing is firmly in place moving forward. 

Sycamore and Hudson Bay have not been the first to register interest in the popular retail chain; Acacia Research’s offer of $64 per share was deemed too low, giving some indication of what management is looking for – so far the company has entered talks with around 20 interested parties, but is still yet to find the right buyer. 

 

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