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Sears Explores Sale of Home Improvement Business
Sears’ parent company has hired Guggenheim Securities to explore a sale of its home improvement business following interest from potential suitors such as private equity firms, Reuters reported.
Transformco, the Hoffman Estates, IL-based owner of the Sears and Kmart retail chains, could raise at least $1 billion by divesting the home improvement business, sources told Reuters.
The Sears Home Services division has emerged as a coveted asset during the COVID-19 pandemic, as consumers embark on renovations while they stay home, according to Reuters. It’s among the few remaining crown jewels following Sears’ bankruptcy in 2018 and $5.2-billion sale to Eddie Lampert, its largest shareholder and creditor.
Earlier this year, Costco acquired Sears’ logistics business, Innovel Solutions, for $1 billion. A deal to sell the home improvement business out of bankruptcy for $60 million was scrapped in early 2019.
Sears also plans to further reduce its store count, Reuters reported.
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- ◦Sale/Acquisition
