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Kohl's Merger

771 Words4 Pages

Merger is defined as a strategic process in which two firm or organizations agree to join forces on equal terms with the hopes that they can develop a successful business venture from an already established business. Acquisition is defined as when one firm purchases the shares or complete control of the company and makes it a part of their business family (Hitt, 2013). The intent of mergers and acquisition is to make sure both companies can benefit from the joint venture to maximize their total profits. The two companies I have chosen are the Gap Inc. and the Kohl’s Corporation. Gap Inc. operates internationally and has acquired other companies. The companies Gap Inc. has acquired are the following: Banana Republic, Old Navy, Intermix, …show more content…

The first Kohl’s department store opened in Brookfield, Wisconsin in 1962. In 1992 Kohl’s went public and opened 76 Kohl’s stores in the Midwest. In 2001 Kohls launched their e-commerce platform of Kohls.com, which online presence has grown and evolved over the years. In 2003, Khol’s opened 28 stores in California, giving Kohl’s a coast-to-coast presence. Kohl’s has expanded over the years and now operates more than 1,100 stores in 49 states …show more content…

has acquired Banana Republic in 1983, Athleta in 2008, Intermix in 2013, and created Old Navy in 1994. Prior to the merger, Gap Inc. suffered from the high turnover of leadership, over-expansion, and 29-month slump in sales, that led to them strategizing the way they operate. Gap saw the potential opportunities in each of their sub-companies. Gap Inc. saw an opportunity and purchased for approximately $130 million Intermix to expand their unique stores and add significant presence to their online site. I believe the joining of Intermix to Gap’s portfolio, Intermix bring in high-end fashion and wealthy brand-conscious clientele to the roster. Diversification of Gap’s portfolio is keen, when trying to reach the masses. Gap is now reaching the trendy and more fashionable customers with offering inexpensive to expensive merchandise. Gap could certainly use each companies expertise to gain knowledge in the different levels of market, especially if they want to compete abroad in other

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