JCPenney Owners Offer $8.6 Billion For Kohl’s, NYPost Reports

Simon Property Group (SPG) and Brookfield Asset Management (BAMR), the new owners of JCPenney, have allegedly made an offer to acquire department store retail chain Kohl’s for $8.6 billion, New York Post reports, citing sources close to the talks. 

Under the proposal, SPG and BAMR would purchase Kohl’s for around $68 per share, sources said. The plan is for JCPenney’s corporate parents to keep the brands separate but streamline backend operations and trim costs. 

Simon and Brookfield have proposed that a single management team would operate JCPenney and Kohl’s while merging the information technology systems so that one unit is in charge of the chains, according to a source. The companies would also have all private apparel manufactured by the same in-house label, the source said. -NYPost 

SPG and BAMR believe they can reduce costs by $1 billion over the next three years, the sources added. 

Related:  Stock futures rise following S&P 500′s third winning week in a row

Kohl’s shares jumped as much as 4.5% on the news, the most since early April. 

It’s crucial to note SPG and BAMR bought JCPenney after the century-old retailer filed for Chapter 11 bankruptcy in May 2020.

“Private equity giants Sycamore Partners and Leonard Green & Partner as well as Saks Fifth Avenue’s Canada-based parent company Hudson’s Bay are reportedly interested in acquiring Kohl’s,” NYPost said, adding Goldman Sachs’ M&A team could be used for the potential sale.  

SPG and BAMR’s department store ambitions come as Amazon and other e-commerce stores crush retail brick and mortar.

Leave a Comment