Mergers & Acquisitions

Rent-to-own (RTO) heavyweight Aaron's Inc. announced Tuesday it has acquired Progressive Finance Holdings, a provider of point-of-sale lease and purchase programs for consumers who don't qualify for traditional financing. Aaron's said the all-cash, $700 million purchase gives the company access to the rapidly growing "virtual" RTO market, and should boost earnings per share by double-digits this year. John Robinson, Progressive's CEO, will join Aaron's management team as executive vice president and report to Aaron's CEO Ronald Allen.

DSW is entering the Canadian market by buying a stake in Canadian footwear retailer Town Shoes. The discount footwear giant will acquire about a 44 percent interest in Town Shoes, a major Canadian footwear retailer, for $68 million Canadian dollars (about US $62 million) in cash. DSW is purchasing its initial stake from Alberta Investment Management Corp., which predominantly owns Town Shoes along with Canadian private equity firm Callisto Capital. DSW's initial stake provides 50 percent voting control and board representation, the company said. The transaction is expected to slightly add to DSW's earnings in 2014, excluding one-time transaction expenses.

Family Dollar said Thursday that it will close hundreds of stores and trim its workforce to cut costs after profits fell sharply in its most recent quarter. The company has struggled to keep up with its rivals in recent quarters. Thursday's poor financial results could revive speculation that Family Dollar might be a takeover target for a larger retailer. "Our second-quarter results didn't meet our expectations," said chief executive Howard Levine. "We're taking a number of important steps through our immediate strategic actions to improve our operational efficiency and deliver better financial returns."

Jones Group shareholders overwhelmingly voted to approve the company's merger with Sycamore Partners in a deal that values the firm at approximately $2.2 billion. The Jones Group Inc. and Sycamore Partners have received all requisite approvals required to complete the transaction. The companies are committed to a seamless transition and expect to close the transaction promptly. Wesley R. Card, The Jones Group CEO, said, "We're pleased to have received such positive shareholder support for the merger with Sycamore Partners. We believe this transaction represents the best outcome for The Jones Group, our shareholders and the loyal customers of our brands."

Alibaba Group is investing about $692 million in retail company Intime Retail with the aim of setting up a joint venture to provide links between its online and physical retail businesses in China. The Chinese e-commerce giant will invest $214 million in shares of Intime, besides acquiring $478 million in convertible bonds, according to a filing by Intime on Monday to the Hong Kong stock exchange. The equity investment will give Alibaba a 9.9 percent share of the enhanced share capital of the company.

J.Crew, the retail chain owned by TPG Capital and Leonard Green & Partners LP, reported a 42 percent drop in fourth-quarter profit amid a broader decline in shopping mall traffic. Net income tumbled to $5.92 million in the quarter, down from $10.2 million a year earlier, the New York-based company said yesterday. Still, revenue grew almost 7 percent to $686.2 million in the period, which ended Feb. 1. At the same time, the company is contemplating an initial public offering for later this year, according to people familiar with the matter. 

Japan's Fast Retailing Co., parent of apparel chain Uniqlo, is no longer in talks to buy U.S. clothing retailer J.Crew Group Inc from its private equity owners, three people familiar with the matter said on Tuesday. The talks ended in recent weeks, the people said, adding that an initial public offering for J.Crew is still on the table. It's possible that the talks with Fast Retailing may be revived, one of the people said.

The man who inadvertently lit the fuse that led to the hottest takeover battle in years was left unmentioned in the announcement of a $1.8 billion merger of two once-warring men's suits chains. Despite repeated inquiries from reporters, George Zimmer, the genial, bearded founder of Men's Wearhouse, has been almost entirely absent from public view during six months of bids, counter bids, lawsuits and invective that were furiously lobbed back and forth by his former company and Jos. A. Bank Clothiers. Ending the hostilities, Men's Wearhouse agreed on Tuesday to buy its rival for $65 a share in cash.

Men's Wearhouse agreed on Tuesday to buy its rival Jos. A. Bank Clothiers for $65 a share in cash, ending months of hostilities between the two retailers. The companies and their advisers worked through the weekend and finally agreed on a deal that values Jos. A. Bank at

Uniqlo parent Fast Retailing and South Korean fashion conglomerate E.Land Group are separately exploring a deal for large U.S. apparel chain J.Crew Group Inc, people familiar with the matter said. J.Crew, which was taken private by TPG Capital LP and Leonard Green & Partners LP for $2.8 billion in 2011, believes it should fetch at least $5 billion in any sale, one of the people said. It wasn't yet clear whether either Japan's Fast Retailing or Korea's E.Land have held any substantial discussions with J.Crew about a deal.