ESL Investments offers $480m to buy Sears’ Kenmore

ESL Investments, a hedge fund owned by Sears Holdings CEO Edward Lampert, has offered to acquire Sears' Kenmore appliances brand for $400m in cash and home improvement business for around $80m in cash.

ESL Investments , a hedge fund owned by Sears Holdings CEO Edward Lampert, has offered to acquire Sears’ Kenmore appliances brand for $400m in cash and home improvement business for around $80m in cash.

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How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
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  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
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The hedge fund is also reportedly planning for a deal for the company’s Parts Direct business, reported Pyments.com. Although ESL’s initial focus will be the home improvement business and Kenmore brand.

These offers were made in a letter to Sears’s board.

In a filing with the US Securities and Exchange Commission, ESL stated that this offer is subject to equity financing from a potential partner.

The name of the partner has not been undisclosed.

In April, Sears CEO stated that the retailer should divest its Kenmore brand, home improvement businesses and real estate. He also announced that ESL Investments will be the bidder for any such divestments, reported CNBC.com.

“Retaildive.com reported that a divestment of Kenmore to ESL will deepen the financial ties between Sears and its CEO.”

In May, Sears set up a panel to explore these proposals.

In its first quarter of the 2018 fiscal year, Sears posted a net loss attributable to the company of $424m as against a profit of $245m during the same period a year earlier.

In the first quarter, store closures impacted the revenue by almost 31%.

Retaildive.com reported that a divestment of Kenmore to ESL will deepen the financial ties between Sears and its CEO.

Earlier, the retail company borrowed hundreds of millions of dollars from the hedge fund as well as divested several properties to a venture controlled by Lampert’s fund.

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How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.