NEW YORK (S&P Global Ratings) June 7,2022--S&P Global Ratings said today that its rating and outlook on Franchise Group Inc. (B+/Stable/--) are not immediately affected by the company's announcement to enter a three-week exclusive negotiation period to acquire department store chain Kohl's Corp. If this deal proceeds, it will be transformative for Franchise Group and have significant real estate sale implications. Kohl's has about 5x as much revenue and 4x as much S&P Global Ratings-adjusted EBITDA as Franchise Group, which has a variety of business lines, including The Vitamin Shoppe. If Franchise Group and Kohl's Corp. do enter into a definitive agreement, Franchise Group says it intends to contribute approximately $1 billion of capital to the transaction, all of which
