Mergers & Acquisitions

Walgreens announced it's completed its acquisition of certain assets of BioScrip’s community specialty pharmacies and centralized specialty and mail-service pharmacy businesses. The transaction represents a total deal value of approximately $225 million. “We welcome the BioScrip leaders and employees to the Walgreens family,” stated Kermit Crawford, Walgreens president pharmacy, health and wellness. “BioScrip’s clinically focused community specialty pharmacies and access to additional limited distribution drug therapies, combined with Walgreens' existing nationwide network of retail and health system pharmacies, creates a strong network of support for our core drug store business to provide specialty pharmacy solutions to our patients."

Frederick's of Hollywood announced today that it's retained Allen & Company, a New York-based investment bank, to assist its board of directors in evaluating and exploring a broad range of strategic alternatives, including but not limited to a sale of the company or a business combination.

Private equity firm The Gores Group may hit the brakes on its $15 a share buyout of Pep Boys, the nation's leading automotive aftermarket service and retail chain. In a regulatory filing released yesterday, Gores Group raised questions as to whether the "serious deterioration in Pep Boys business" since the company announced a late January buyout could precipitate a material adverse event, which would allow the buyer to cancel the deal. The notice sent Pep Boys’ shares sharply lower — down close to 25 percent — and at under $12, below the pre-buyout share price.  

Wolverine Worldwide announced that it, along with Blum Capital Partners and Golden Gate Capital, has signed a definitive agreement to acquire Collective Brands. As part of the transaction, Wolverine will acquire Collective Brands’ Performance + Lifestyle Group, which consists of the Sperry Top-Sider, Saucony, Stride Rite and Keds brands. Adding these businesses to Wolverine's existing portfolio, which is led by Merrell, Hush Puppies, Wolverine, Sebago and Caterpillar Footwear, creates an even more powerful stable of lifestyle brands that positions the company for accelerated growth in both revenue and profits. 

Ascena Retail Group is buying Charming Shoppes, owner of Lane Bryant, for about $890 million, giving it access to the plus-size women’s clothing market. Charming Shoppes also runs Fashion Bug, Catherines Plus Sizes and the direct marketing business Figi’s. Ascena, owner of the dressbarn, maurices and Justice brands, will pay $7.35 for each Charming share. That's a 25 percent premium to Charming’s closing price of $5.90 Tuesday. Ascena’s cash tender offer should roll out within 10 business days.

Bonobos, a brand that sells men’s clothing online, has raised $16.4 million led by retail giant Nordstrom, with Accel Partners and Lightspeed Venture Partners participating. In addition to the funding, Nordstrom will now sell Bonobos clothing at a number of its stores and on Nordstrom.com. The deal with Nordstrom will be the first time the brand is available in-store and online outside Bonobos.com and the company’s New York City headquarters’ showroom store.

Bedding retailer Mattress Firm announced it's agreed to buy all the remaining equity interests of Mattress Giant in a deal valued at approximately $47 million. Mattress Firm, which bought 55 Mattress Giant stores last year, said the latest deal involves about 180 stores in Florida and Texas, its two largest markets. It will give the retailer more than 900 stores. With the newly acquired stores and about 100 new stores expected to open, Mattress Firm projects it will end its current fiscal year on Jan. 29, 2013, with more than 1,000 stores and revenues of just over $1 billion. 

An affiliate of Phoenix-based private equity investor Najafi Cos. has acquired the well-known SkyMall in-flight catalog and e-commerce business for an undisclosed sum. Although the privately held SkyMall doesn't disclose revenue, annual sales are thought to exceed $100 million. Through its Direct Brands unit, Najafi already sells books, music and other products to members of the various direct marketing clubs it operates in the United States, Canada and Europe. With SkyMall, Najafi sees an opportunity to offer new products to its book- and music-club members and books, music and videos to SkyMall catalog readers.

Callaway Golf Company announced the sale of the Top-Flite brand to Dick's Sporting Goods. The announcement was made by Chip Brewer, president and CEO of Callaway Golf. "The decision to sell Top-Flite reflects the company's renewed focus and commitment to driving the proficiency of our core businesses, specifically the success of Callaway and Odyssey products," said Brewer. "Our strong working relationship with Dick's Sporting Goods went a long way towards the completion of this agreement and we look forward to their stewardship of the Top-Flite brand."

Dick's Sporting Goods announced today that it's agreed to make a 20 million pounds strategic investment in JJB Sports, a leading U.K. sports retailer. Under the terms of the agreement, Dick's Sporting Goods will purchase 18.75 million pounds in junior secured convertible notes and 1.25 million pounds in ordinary shares of JJB Sports, subject to the approval of JJB's shareholders. In conjunction with its investment in JJB Sports, Dick's will be entitled to nominate up to two nonexecutive directors to serve on the JJB Sports' board. Dick's will also be entitled to board observer rights under certain circumstances.