Mergers & Acquisitions

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.” 

Dollar General Corp. on Monday reported a 36% jump in quarterly profit and raised its expectations for the year as its momentum continued. Dollar General earned $213.4 million in the fiscal first quarter ended on May 4, up from $157.0 million a year earlier. Sales rose 13% to $3.9 billion. Same-store sales increased 6.7%. Dollar General is starting off 2012 with strong performance in the first quarter due to excellent same-store sales growth of 6.7%, representing the fifth consecutive quarter of accelerating improvement,” said Rick Dreiling, chairman and CEO.

Nike is trimming its portfolio. The company announced it will sell its Cole Haan and Umbro brands to cut costs and focus on its core namesake brand. Nike acquired Cole Haan, which specializes in casual and dress shoes, handbags, and accessories, in 1988 for $80 million, plus the assumption of $15 million in debt. Cole Haan operates more than 180 stores throughout the United States, Canada, the Middle East and Asia. 

Bed Bath & Beyond announced the all-cash acquisition of Linen Holdings for approximately $105 million. Based in Gibbsboro, New Jersey, Linen Holdings is a privately held, value-added distributor of bath, bed and table linens, other textile products and amenities to customers in the hospitality, cruise line, food service, healthcare and other industries.

1-800-FLOWERS.COM announced today that it's made an equity investment in Flores Online, one of Brazil's leading floral and gift retailers. 1-800-FLOWERS.COM has teamed with San Paolo, Brazil-based BR Opportunities, which has also taken an equity stake in Flores Online.