Mergers & Acquisitions

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.

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.