Mergers & Acquisitions

J.C. Penney said Monday it's raised $248 million and taken its first step toward shedding noncore assets by selling off part of its stake in a Simon Property Group unit. Following the transaction, the real estate unit for Penney — JCP Realty — will hold about 205,000 limited partnership units in Simon’s operating partnership. Also on Monday, J.C. Penney CEO Ron Johnson unveiled a trio of in-store shops, slated to open at 683 J.C. Penney stores across the United States starting on Aug. 1. The three in-store concepts all feature denim offerings. 

Private equity firm Brentwood Associates has acquired a majority stake in Sundance Catalog and plans to scale the luxury retailer, long overshadowed by its sister resort and festival, into an e-commerce powerhouse, the investment firm told TheWrap. The move came as Los Angeles-based Brentwood sold off stock in some of its niche brands — French equestrian shoemaker Ariat International and clothier Filson Holdings — to purchase what partner Eric Reiter called "a gem." 

Amazon.com reportedly agreed on Monday to buy mapping startup UpNext, the latest sign of increased competition between the world's largest internet retailer and tech rivals such as Google and Apple. GigaOM reported that UpNext Founders Raj Advani, Vik Advani, Robin Har and Danny Moon will move from New York to Seattle, where Amazon is based, to lead the e-commerce company's mapping efforts. The technology news service didn't report a purchase price, but said UpNext backers, including Chris Sacca's Lowercase Capital, will get a five-fold return on their investment, made about 16 months ago.

Word on the street is Best Buy’s founder Richard Schulze would like to find a buyer willing to help turn around the struggling chain. But retail industry insiders question whether anyone would want to invest billions of dollars in the electronics retailer in its current state. Schulze left his position as Best Buy’s chairman earlier this month and has reportedly hired the Credit Suisse Group to help him explore buyout options for the retailer. Schulze still owns a stake in the company valued at approximately $1.4 billion, but in order to present a viable buyout plan he would have

Walgreens said it will spend $6.7 billion to buy a stake in health and beauty retailer Alliance Boots, the Kansas City Star reports. The Deerfield, Ill.-based drugstore chain plans to spend about $4 billion in cash and more than 83 million shares for a 45 percent ownership stake in the Swiss company. Alliance Boots operates more than 3,300 retail stores in 11 countries. Walgreens has the option to purchase the rest of Alliance Boots in about three years in a deal valued at about $9.5 billion.

Within the past year, Fab.com has hit a lot of milestones: 1.8 million products sold; 4.75 million members and now three acquisitions. The acquisition announced today on the company’s blog is Llustre, a copycat of Fab.com in the U.K. that's identically focused on selling home decor, apparel and other items from independent designers. Terms of the deal weren't disclosed. Fab.com previously purchased Casacanda in Germany and Fashionstake in the U.S. to launch its clothing vertical.

Zumiez announced that it's signed a definitive purchase agreement to acquire Blue Tomato, a European action sports retailer based in Austria. The total purchase price will be 59.5 million EUR. In addition to the purchase price, the agreement provides for an additional 22.1 million EUR of contingent future payments based upon achieving certain performance objectives related to growth over the next three years. The acquisition, which will be funded by Zumiez's existing cash balances, is projected to close prior to the end of the second quarter of 2012. 

Retail sales in the U.S. fell in May for a second straight month as slower employment and subdued wage gains damped demand, a sign the world’s largest economy is cooling. The 0.2 percent decrease followed a similar decline in April that was previously reported as a gain, Commerce Department figures showed today in Washington, D.C. Last month’s drop matched the median forecast of 79 economists surveyed by Bloomberg News. Sales excluding automobiles slumped by the most in two years. 

The Fisher family, the founders of Gap Inc., have acquired a stake in high-end riding gear and apparel company Ariat International. The Fisher family, along with Ariat management, purchased the firm from LNK Partners and Brentwood Associates. Terms of the sale weren't disclosed.

Private equity firm Madison Dearborn Partners has purchased Things Remembered from Bruckmann, Rosser, Sherrill & Co. (BRS) and GB Merchant Partners for $295 million. “GBMP and BRS were excellent partners, providing valuable strategic guidance and capital support throughout the investment period,” said Michael Anthony, CEO of Things Remembered, Highland Heights, Ohio, which operates 640 stores in the United States and Canada. “We now look forward to working with Madison Dearborn and benefitting from its expertise, as we remain focused on supporting our customers with the highest service and quality.”