KKR shares close lower on Wednesday, company to buy 1-800 Contacts from AEA Investors LP

KKR & Co Inc (KKR) will purchase online contact lens retailer 1-800 Contacts from AEA Investors LP, Reuters reported. The deal was valued at more than $3 billion, the same media said, citing a knowledgeable source.

Shares of KKR & Co closed lower for the sixth time in the past ten trading sessions in New York on Wednesday. The stock went down 1.59% ($0.55) to $34.10, after touching an intraday high at $35.39, or a price level not seen since September 18th ($36.03).

Shares of KKR & Co Inc have risen 16.90% so far this year, following another 48.60% gain in 2019.

Similar to other e-commerce companies, 1-800 Contacts’ client base and sales have surged during the coronavirus crisis, with many customers taking advantage of its online services.

For almost a decade, 1-800 Contacts was listed on NASDAQ before being acquired by Fenway Partners in 2007.

“KKR brings scale, unlike what we have had previously. At this stage of the growth of our business, it should be great to have access to their scale, resources and expertise,” John Graham, 1800-Contacts’ Chief Executive Officer, was quoted as saying by Reuters.

Earlier in 2020, KKR & Co Inc acquired a majority stake in Coty Inc’s professional and retail hair division and Roompot, a Dutch vacation parks company.

Analyst stock price forecast and recommendation

According to CNN Money, the 14 analysts, offering 12-month forecasts regarding KKR & Co Inc’s stock price, have a median target of $41.00, with a high estimate of $47.50 and a low estimate of $36.00. The median estimate represents a 20.23% upside compared to the closing price of $34.10 on September 23rd.

The same media also reported that at least 13 out of 17 surveyed investment analysts had rated KKR & Co Inc’s stock as “Buy”, while 4 – as “Hold”.