Lisa Meulbroek, Jonathan Barnett
Harvard Business School (200044-PDF-ENG)
February 03, 2000
In 1997, Kmart received an offer from retail procurement specialist Leonard Green & Partners to buy its ailing chain of hardware stores Builders Square. Green’s offer included a cash payment of $ 10 million, a guarantee to purchase 28% of the shares of the new company in the future, and the assumption of non-cancellable lease commitments of Builders Square of approximately $ 1.5 thousand. millions. Kmart would remain responsible for the lease payments in the event that the new business fails. In the midst of the highly competitive home improvement retail industry, the following questions are being asked: (1) What is the value of the Builders Square subsidiary? (2) Is the Green Deal a good deal for Kmart? and (3) should Kmart accept the offer or wait for a higher offer or more offers?
We don‘t have the case solution, but we pay up to $50 for yours!
- Set a reminder to receive an email after your university‘s case study deadline.
- Upload your case study solution. We will review it for quality.
- Get your money via PayPal or to your bank account.