Mergers & Acquisitions

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. 

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. 

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.