Mergers & Acquisitions

Eddie Bauer and Pacific Sunwear are exploring a merger to consolidate their store footprint and weather a prolonged downturn in the U.S. brick-and-mortar retail sector. The two apparel retailers have both previously filed for bankruptcy and are looking for ways to spur future growth. In a merger, the companies could whittle down their store counts…

For consumer product and retail companies, 2017 offered more of the steady M&A activity that has characterized the market for the last several years. While deal value dropped from 2016 highs, this will likely be short lived. Based on interviews with C-level retail executives, three-quarters of whom reported that they’re using M&A to help their companies acquire new capabilities, expand their product portfolios, access new customers, or increase their geographic reach, the market is characterized by optimism from those at the top. For example, 71 percent of respondents reported that M&A is creating value, up from 48 percent last year.

This week, the board of Flipkart Online Services Pvt has approved an agreement to sell about 75 percent of the company to a Walmart Inc.-led group for approximately $15 billion, according to sources. Bloomberg reports under the proposed deal, SoftBank Group Corp. will sell all of the 20-plus percent stake it holds in Flipkart through…

Macy’s announced today that it has acquired STORY, a concept store in New York City. Additionally, Rachel Shechtman, STORY’s founder and chief executive officer, will join Macy’s, Inc. as brand experience officer, reporting directly to Hal Lawton, president of Macy’s. In her role, Shechtman will focus on ways to enhance the in-store customer experience with the…

Walmart is retreating from Europe, merging its U.K. supermarket business Asda with bigger rival Sainsbury's. In return, Walmart will receive £2.97 billion ($4.1 billion) in cash and a 42 percent stake in the combined business, the companies said in a statement on Monday. The deal values Asda at £7.3 billion ($10 billion), and creates a…

ESL Investments, the hedge fund led by Sears Holdings CEO Eddie Lampert, is proposing to buy the Kenmore brand, Sears' Home Improvement business, its PartsDirect division and some of the chain's real estate. In a letter to Sears’ board on Friday, ESL said: "We continue to see value in Sears and its underlying assets, and believe strongly…

Walgreens said Wednesday that it had completed its takeover of 1,932 new stores that it agreed last year to buy from Rite Aid Corp. “Our growth strategy of increasing and consolidating volume, differentiating ourselves through value and quality of service, and controlling costs is bearing fruit across our businesses,” Walgreens Chief Executive Officer Stefano Pessina said…

Athletic retailer The Finish Line said yesterday that it has agreed to be purchased by U.K.-based retailer JD Sports Fashion for $558 million. JD is the leading European retailer of sports, fashion and outdoor brands. The merger agreement is subject to Finish Line and JD shareholder approval, the receipt of all required regulatory approvals, and…

According to a new report, two of the biggest names in food retailing, Target and Kroger, are considering a merger that would bolster their position against the growing threat of Amazon.com. Fast Company reported Friday morning that Target and Kroger started talking "last summer" about "a partnership" that would help Target's grocery business and Kroger's e-commerce capabilities. The…

Blue Pool Capital, a financial firm that principally invests the wealth of Alibaba founders Jack Ma and Joe Tsai, has invested $20 million into the women’s clothing rental business Rent the Runway, according to a report in Recode last week. Reportedly, the funding…