Womenswear Daily says KKR is considering joining forces with Goldman Sachs to launch a $24bn buyout of Macy’s, the famous US retailer. The move would value Macy’s stock at $52, compared with a market price of $40 at Wall Street’s close on Tuesday, the magazine said, adding:
Private equity sources said an agreement in principle could be within days of getting completed. The financial sources said principals involved had expected a deal to be signed last weekend, but others indicated there were details that needed to be ironed out. Sources also believe that the parties are trying to get a deal done before Monday, the scheduled date for a series of investor meetings planned by Macy’s management.
This is not the first time reports of buyout interest in Macy’s have circulated. The retailer, until recently known as Federated Department Stores and which also operates the Bloomingdale’s chain, has been assumed to be on the radar of private equity firms because of its strong brand name, healthy cash flow and extensive property assets.
Back in June heavy options trade in Macy’s was sparked by rumours that KKR and Goldman were interested in taking the business over.