Esl Acquisition of Sears and Kmart
ESL’s Acquisi,on of Kmart and Sears
Who knows?
Which one of the retailers had the greatest revenues in 1987?
6/12/12
ESL’s Acquisi,on of Kmart and Sears
2
Agenda
1 2 3 4 5
Introduc5on Kmart, Sears, ESL Strategic vs. Financial buyer ESL’s Acquisi,on of Kmart From Kmart to Sears Results and Conclusion
6/12/12
ESL’s Acquisi,on of Kmart and Sears
3
Company introduc,on: Kmart, Sears, ESL
Kmart (2011 revenue: $15.5bn) 1. Discount Retail chain, household items, clothing, and foods, founded in 1962 2. Filed for Chapter 11 in 2002
Sears (2011 revenue: $21.6bn)
1. Retail chain of department stores, founded in 1893 2. Offers a wide range of home merchandise, apparel 3. Mainly operated in shopping malls
ESL Investments
1. Privately owned hedge fund founded by Eddie Lampert 2. Worth over $9 billion in 2004 3. Average returns of the fund is 29% since 1988
6/12/12
ESL’s Acquisi,on of Kmart and Sears
4
Agenda
1 2 3 4 5
Introduc,on Kmart, Sears, ESL Strategic vs. Financial buyer ESL’s Acquisi,on of Kmart From Kmart to Sears Results and Conclusion
6/12/12
ESL’s Acquisi,on of Kmart and Sears
5
Strategic vs. Financial Buyer
Who knows?
Which one of the retailers had the greatest revenues in 1987?
6/12/12
ESL’s Acquisi,on of Kmart and Sears
2
Agenda
1 2 3 4 5
Introduc5on Kmart, Sears, ESL Strategic vs. Financial buyer ESL’s Acquisi,on of Kmart From Kmart to Sears Results and Conclusion
6/12/12
ESL’s Acquisi,on of Kmart and Sears
3
Company introduc,on: Kmart, Sears, ESL
Kmart (2011 revenue: $15.5bn) 1. Discount Retail chain, household items, clothing, and foods, founded in 1962 2. Filed for Chapter 11 in 2002
Sears (2011 revenue: $21.6bn)
1. Retail chain of department stores, founded in 1893 2. Offers a wide range of home merchandise, apparel 3. Mainly operated in shopping malls
ESL Investments
1. Privately owned hedge fund founded by Eddie Lampert 2. Worth over $9 billion in 2004 3. Average returns of the fund is 29% since 1988
6/12/12
ESL’s Acquisi,on of Kmart and Sears
4
Agenda
1 2 3 4 5
Introduc,on Kmart, Sears, ESL Strategic vs. Financial buyer ESL’s Acquisi,on of Kmart From Kmart to Sears Results and Conclusion
6/12/12
ESL’s Acquisi,on of Kmart and Sears
5
Strategic vs. Financial Buyer