Mergers & Acquisitions

Pep Boys announced that it's agreed to terminate the proposed merger between itself and The Gores Group. As settlement for any and all potential claims that Pep Boys could assert under the terms of the merger agreement, previously announced on January 30, 2012, The Gores Group has agreed to pay Pep Boys a fee of $50 million and to reimburse Pep Boys for certain merger-related expenses.

Express, a specialty retail apparel chain operating more than 600 stores, today announced that its board of directors has authorized the company to repurchase up to $100 million of company common stock. The repurchase program will be funded using the company's available cash and is expected to be executed over the next 18 months. Michael Weiss, chairman, president and CEO, stated: "Our board believes that at the current price our stock is undervalued based on many criteria, including the long-term growth prospects for the company, and that the repurchase program is an effective means to enhance shareholder value."

Luxottica SpA, the parent company of Oakley and Sunglass Hut, reached an agreement to buy the remaining Sun Planet retail stores, about 120 locations in Spain and Portugal. In a filing to the Italian stock exchange, the company said the operation, which is expected to be completed in the third quarter of this year, has an enterprise value of about EUR20 million. Luxottica, which in 2011 acquired the Sun Planet retail chain in Latin America, said that over time the stores will be rebranded under the Sunglass Hut banner. 

American Eagle Outfitters said it would exit its children's apparel business, which had a loss in the last fiscal year. The company said it was "exploring options," including a full or partial sale of assets for the 77kids by American Eagle brand, the company said in a statement. The brand had a net loss of $24 million on sales of $40 million in the year ended Jan. 28, according to the statement. American Eagle said in a separate statement that its chief financial officer, Joan Hilson, planned to step down after more than six years at the company.

Bidz.com, an online retailer of jewelry, announced that it's entered into a definitive merger agreement with Glendon Group to be acquired for $0.78 per share in cash. This per share price represents a premium of 59.2 percent over the company's closing price of $0.49 per share on May 16, 2012, the last trading day prior to the execution of the merger agreement. The proposed transaction is expected to close in the fourth quarter of 2012. Following completion of the transaction, Bidz.com would become a privately held company.

Sears Canada announced today that Sears Holdings Corporation, which holds approximately 95 percent of Sears Canada's common shares, has advised it that Sears Holdings’ board of directors has approved plans to pursue a distribution of a portion of its holdings in Sears Canada such that, immediately following the spin-off, Sears Holdings would retain approximately 51 percent of the issued and outstanding shares of Sears Canada. Sears Holdings has indicated that subsequent to the spin-off, it may sell, hold or distribute to holders of Sears Holdings’ common stock any portion of its remaining interest in Sears Canada.

Coty Inc. said on Monday it's withdrawing its $10.7 billion takeover bid for Avon Products, saying the world's largest cosmetics direct seller had missed its deadline to start talks. Coty had first made a public offer for Avon in April, but later told that company's board that it had until the close of business on Monday to start talks.

Golf Town and Golfsmith International Holdings announced that they've signed a definitive merger agreement, pursuant to which Golf Town will acquire Golfsmith, for $6.10 per share in cash. This represents a premium of 32.2 percent to Golfsmith stockholders based on the volume-weighted average closing prices of the company common stock on the 30 trading days immediately preceding this announcement. The closing of the acquisition is expected to occur in the third quarter of 2012. Upon the closing of the transaction, Martin Hanaka will assume the role of CEO of the combined company. 

American Greetings Corporation announced it has acquired all of the outstanding senior secured debt of Clinton Cards for approximately $56 million through a subsidiary in the United Kingdom. Clinton Cards, one of the largest specialty retailers of greetings cards in the U.K., has approximately 750 stores and annual revenues of approximately $600 million across its two primary retail brands, Clinton Cards and Birthdays. The legacy Clinton Cards business has been an important customer to American Greetings’ international business for approximately 40 years and is one of American Greetings' largest customers.

Bed Bath & Beyond announced plans to acquire home goods retailer Cost Plus for $495 million. The all-cash deal will close in the second quarter and Cost Plus will continue to operate as a subsidiary. The two home goods chains have worked together for two years, with Bed Bath & Beyond testing Cost Plus-style specialty food departments in several of its stores. That trend will accelerate after the acquisition.