The small conglomerate is looking to pay around $8 billion for Kohl’s.

The Franchise Group is a relatively small conglomerate that owns controlling stakes in a variety of small to mid-tier businesses, including The Vitamin Shoppe, Buddy’s, and Pet Supplies Plus. However, today, this group made waves when the word got out that they’re looking to buy out retail chain Kohl’s to the tune of roughly $8 billion. Specifically, the Franchise Group would purchase all of Kohl’s shares at $60 a pop.

Why Franchise Group wants to buy Kohl’s and what could happen next https://t.co/B0vvc8D8JY

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While this is a potentially lucrative deal for Kohl’s, it presents a variety of potential complications, from the chain’s existing partnership with Amazon to ongoing stocking difficulties brought about by the supply chain problems affecting the global retail industry. While answers to those questions have not yet been provided, Franchise Group may still be able to work things to their advantage.

Is the six-month-long saga over Kohl’s coming to a close? https://t.co/dWURou3Onm

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“What Franchise Group does is look for good businesses and well-known, strong brand names with a good consumer following,” Michael Baker, a senior research analyst at D.A. Davidson, told CNBC.

“And then they have a different strategy on how to capitalize or how to monetize those acquisitions,” he added. “Sometimes it’s turning them from company-owned stores into franchise stores.”