Mergers & Acquisitions

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."

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.

Coca-Cola agreed to buy a 10 percent stake in Green Mountain Coffee Roasters for about $1.25 billion, and will work with the maker of Keurig coffee brewers to introduce a system for producing single-serve cold drinks. Teaming up with Green Mountain on new beverages will help Atlanta-based Coca-Cola boost sales, said Marc Riddick, an analyst at Williams Capital Group LP in New York.

Jos. A. Bank Clothiers, which told Men's Wearhouse it won't enter buyout talks, has been looking at other acquisitions, including retailer Eddie Bauer, people familiar with the matter said. Jos. A. Bank sent a letter Sunday telling Men's Wearhouse that a $57.50-a-share bid undervalues the company and that managers see no reason to enter negotiations. Meanwhile, Jos. A. Bank has held preliminary talks to acquire outdoor clothing retailer Eddie Bauer, said one of the people, who asked not to be identified because the talks are private.

The Home Depot announced yesterday that it's acquired Blinds.com. Based in Houston, Blinds.com is the No. 1 online window coverings retailer in the world. Terms of the deal weren't disclosed. "We're delighted to welcome the Blinds.com team into The Home Depot family," said Frank Blake, chairman and CEO of The Home Depot. "The acquisition of Blinds.com positions us well for expansion in the quickly growing online window coverings market. In addition, their unique sales and service model is one we hope to learn from as we continue to create even better interconnected retail experiences for our customers."

Dots LLC, the 400-store clothing chain for young women, filed for bankruptcy protection, blaming prior management, the economy and leases that cost too much. The company, founded 27 years ago outside Cleveland, has arranged to borrow $36 million to keep operating as it reorganizes under court protection and implements a new merchandising strategy, according to an emailed statement. Regional clothing chains have had a difficult time competing with bigger companies such as TJX Cos. and Hennes & Mauritz AB. Loehmann's, the New York-based discount fashion retailer, filed for bankruptcy last year and is liquidating its assets.

In the seemingly never-ending takeover war between two of the country's largest men's suit retailers, Jos. A. Bank on Friday rejected the latest unsolicited bid from Men's Wearhouse. Jos. A. Bank called its suitor's offer of $57.50 a share "inadequate and opportunistic" in announcing its rejection. Shares of Jos. A. Bank closed at $56.49 on Friday. "At this time, the company has a well-developed strategy in place to continue to increase revenue, substantially improve margins and deliver enhanced returns to stockholders," Robert N. Wildrick, the company's chairman, said in a statement. 

Aeropostale, the teen-clothing retailer under pressure from an activist investor, has contacted at least two private-equity firms as management explores strategic options, people with knowledge of the matter said. The New York-based retailer also has reached out to investment banks about how to handle pressure from activist investor Crescendo Partners or run a sale process, said two of the people, who asked not to be identified because the process is private. The company isn't in negotiations to sell itself yet, the people said.

New York-based Fifth & Pacific Cos. Chief Executive William McComb has spent the past seven years streamlining the women's apparel powerhouse, selling the Liz Claiborne brand to J.C. Penney, finding buyers for other brands and shuttering the rest, The Wall Street Journal said in a report. Now McComb is down to just one. On Thursday, the company changed its name to Kate Spade & Co. from Fifth & Pacific to reflect its new, singular focus. The fashion company also said that McComb would leave his post, the report stated.