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

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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

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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