Sears Hometown and Outlet Stores get $21M Offer from Eddie Lampert and ESL

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Sears Hometown and Outlet Stores Inc. announced on Monday that Eddie Lampert and his hedge fund ESL investments had offered $21 million to buy the rest of the company that they don’t already have.

According to the announcement, Lampert is offering $2.25 per share for about the 41 percent of the company that he doesn’t already own. This is a considerable premium to the $1.70 that the stock closed at this past Friday.
Sears Hometown and Outlet Stores officials said they’ll study the bid.

“The board of directors of the company has granted a special committee of independent directors the exclusive authority to review and evaluate the proposal and, if deemed advisable by the special committee, to engage in discussions or negotiations concerning the proposal, or to reject the proposal. … The proposal stated that Transform would only intend to proceed with its proposal if it is approved by the full board of directors of the company upon the recommendation of the special committee,” said Sears Hometown and Outlet Stores officials.

It was in 2012 that Sears Holdings Corp. spun off Sears Hometown and Outlet Stores Inc. The company operates 677 stores in 49 states as well as in Puerto Rico and Bermuda.

“We were able to post these improved … results despite the distractions and headwinds associated with the Sears Holdings bankruptcy proceedings, which had a direct negative impact on our results,” CEO Will Powell said in a statement.

Disclaimer: We have no position in Sears Hometown and Outlet Stores, Inc. (SHOS) and have not been compensated for this article.