Prof. Vaaler Interviewed on WCCO About Mills Fleet Farm Acquisition

Professor Paul Vaaler was interviewed by WCCO Television's Bill Hudson about today's announcement that Minnesota-based Mills Fleet Farm will be acquired by KKR for $1.2 billion. In the press release, the MIlls family and KKR highlighted the need for capital to finance expansion of the 35-store chain located in rural regions of Minnesota, Wisconsin, Iowa and the Dakotas. Vaaler opined that the current generation of Mills family members might have been reluctant to reinvest family capital to fund and then take up senior executive positions to manage such expansion. This reluctance might have prompted the decision to sell out to KKR, which typically holds such assets for 3-5 years and then divests, often through a public offering. KKR has a history of investment in US-based retailers, including Toys R Us.