Mergers & Acquisitions

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.

Jos. A. Bank agreed to meet with Men's Wearhouse to discuss a potential merger after rejecting a sweetened $1.78 billion bid from the fellow menswear chain. The current Men's Wearhouse proposal is inadequate and not in the interests of investors, Hampstead, Md.-based Jos. A. Bank said yesterday in a statement. It reiterated that its separate deal to buy Eddie Bauer — an agreement reached earlier this month — would create significant value for shareholders.

Imagine letting your customers see how your clothing items fit before they make a purchase, possibly boosting conversion rates while lowering returns due to poor fit. That's the idea behind PhiSix, a computer graphics company just acquired by eBay. The technology behind eBay's latest acquisition creates 3-D models of clothing from photos and "simulates the behavior of the garments." It can be used online and offline to let shoppers to see how clothes fit, look and move in different environments. The technology is also able to recommend a size for the user's body based on basic measurement inputs. 

Eminence Capital LLC, a shareholder that's suing Jos. A. Bank Clothiers Inc. for rejecting a $1.6 billion takeover bid from rival Men's Wearhouse, accused the men's retailer Tuesday of resorting to "desperate tactics" to protect management jobs by planning to buy outdoor clothing retailer Eddie Bauer. In a letter to Bank's board, Eminence, a New York hedge fund that owns a 10 percent stake in Men's Wearhouse and about 5 percent of Bank's stock, called the $825 million cash-and-stock Bauer deal "a poor strategic decision for Jos. A. Bank at a price that's excessive and almost surely destroys shareholder value."

Specialty jewelry retailer Signet Jewelers said on Wednesday that it would acquire its smaller rival Zale Corporation in a deal that significantly expands its business in the United States. Signet, which is based in Bermuda, operates more than 1,400 stores in the United States under the Kay Jewelers and Jared the Galleria of Jewelry brand names. It also operates about 500 stores in Britain under the brands H.Samuel and Ernest Jones. As part of the deal, Signet has agreed to pay $21 a share in cash for Zale's outstanding shares, or about $690 million. 

Private equity firm KKR & Co. said it would acquire National Vision from buyout firm Berkshire Partners in a bet that consumers would increasingly seek out the budget retailer's low-price contact lenses and eyeglasses. Terms of the deal weren't disclosed but a person familiar with the matter pegged the value at just north of $1 billion. The management team of National Vision is expected to remain a significant investor in the company, KKR said. KKR was one of the private equity firms pursuing the Lawrenceville, Georgia-based company, which hired Barclays to assist with the sale, Reuters reported in December.

Amazon.com has acquired a video gaming studio called Double Helix, fueling speculation that it's developing a gaming console. Amazon has been leveraging its strength in media (books, DVDs, CDs) in the digital space, and just as it's producing e-books, streaming video, original "TV series," and mobile games and apps, it's now working on console games as well. The Washington Post wonders if it really is a gaming console that's in the works, or perhaps something different.