Franchise Group says it would use Kohl’s real estate assets to finance purchase of the company

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A Kohl’s storefront featuring its new Sephora shop-in-shops. Credit: Kohl’s Corp.

If Menomonee Falls-based Kohl’s Corp. agrees to be sold to Franchise Group Inc., Delaware, Ohio-based Franchise Group says it would fund the estimated $8 billion purchase of Kohl’s with $1 billion from increasing the size of its secured debt facilities and the rest of the financing would be “provided on the basis of the real estate assets of Kohl’s Corp.,” according to a statement from the company.

“Other than the increased secured debt facilities of Franchise Group, none of the financing for the transaction is expected to be recourse to Franchise Group,” according to the release.

Kohl’s and Franchise Group announced Monday that they have entered into a three-week exclusive negotiation period for a deal in which Franchise Group would acquire Kohl’s for $60 per share.

Kohl’s has 1,162 department stores locations across the U.S. and…

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