Hedge fund owner and former Sears chairman Edward Lampert has struck a $21 million deal to bring the Sears Hometown stores under the same company as Sears and Kmart.
The Wall Street Journal reported that Transform Holdco LLC., which owns Sears and Kmart and is controlled by Lambert’s ESL Investments, is buying the 42% of Sears Hometown & Outlet Stores Inc., that it doesn’t own for $2.25 a share in cash.
Sears Holdings spun off Sears Hometown stores seven years ago. The deal is expected to close in the third quarter.
Earlier this year, Lampert succeeded with his bankruptcy bid in a bankruptcy auction, preventing Sears from liquidating the rest of its stores.
Sears Hometown had net sales of $1.4 billion in the last fiscal year and has more than 600 stores.
Sears Hometown also has the option to sell its Outlet and Buddy’s Home Furnishings stores. Any sale would need to be for at least $97.5 million and close by Oct. 23, according to the Journal.