Kohl’s explores acquisition of At Home Group

U.S. department store operator Kohl’s has approached At Home to express interest in acquiring the U.S. home decor retail chain, people familiar with the matter said on Wednesday.

A deal would help Kohl’s expand its customer base, which focuses on women’s, men’s and children’s clothing, and boost its presence in the home goods category, which has traditionally accounted for a small part of its business.

Kohl’s stock dipped nearly 2% late Wednesday, while shares of At Home surged more than 7%. 

Kohl’s recently started conversations with At Home to explore a deal, the sources said. At Home has been exploring a sale for the last three months, and is already in advanced deal negotiations with private equity firms, including Hellman & Friedman, the sources added.

There is no certainty that an offer from Kohl’s will materialize as a result of the preliminary discussions, and At Home may revert to trying to sell itself to a buyout firm, the sources added, asking not to be identified because the matter is confidential.

Kohl’s and At Home did not immediately respond to requests for comment, while Hellman & Friedman declined to comment.

As of the end of trading on Tuesday, At Home Group had a market capitalization of $1.3 billion.

—CNBC’s Nadine El-Bawab contributed to this report.