Apollo expected to provide up to $2 billion in debt financing in acquisition of Kohl’s Group
Global Apollo Management is reportedly in talks to provide up to $2 billion in debt financing to retail store operator Franchise Group for the potential acquisition of department store chain Kohl’s Corp.
Discussion of the deal is still in its early stages and no deal has been reached, Reuters reported citing sources.
Franchise Group announced on Monday that it has entered into a three-week exclusive negotiation to acquire Kohl’s for $60 a share, valuing the company at around $8 billion.
Sycamore Patners, Brookfield Asset Management and Simon Property Group are also said to be in the running for the department store.
This is the third high-profile deal the global buyout major has participated in recently.
It was announced yesterday that the private equity firm has teamed up with Mukesh Ambani’s Reliance Industries to make a binding offer for UK chemicals chain Boots, which values the company at £5-6 billion.
He is also reportedly in talks with Elon Musk to provide additional preferred equity financing to reduce the $21 billion cash contribution he committed to the Twitter acquisition deal.
He’s also been involved in a few retail chain deals recently, including exiting a controlling stake in specialty grocer The Fresh Market at an 8x adjusted EBITDA multiple last month, Agreed said. $1.75 billion investment in the Cerberus Capital-backed grocery chain Albertsons last year, and invested in Los Angeles-headquartered Smart & Final for the second time in 2019 in as part of a $1.1 billion deal.
Apollo raised more than $24 billion in 2017 in its largest-ever private equity round.
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