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Mergers & Acquisitions

It’s not easy to stay on top of the latest company realignments in the retail industry. It’s a volatile environment — across retailer segments as well as solution provider organizations. As soon as the announcements are made, Retail TouchPoints publishes an article covering the news, in this Mergers & Acquisitions section. Learn about the latest developments here.

Cegid Buys SMB Tax Solution Loop Software

Cegid has acquired Loop Software, which offers a collaborative cloud-based accounts management and taxation solution for accountants and small and medium-sized enterprises. Terms of the deal were not disclosed.

Staples Acquires Essendant For $996M As Retailer Seeks Wholesale Revival

Staples has acquired Essendant, a national wholesale distributor of office supplies, for $996 million, including net debt. The deal, coming a year after Staples was acquired by investment firm Sycamore Partners for $6.9 billion, will result in a major new multibillion-dollar player in the business of distributing office supplies and industrial products that range from automotive parts to equipment for oil fields. With Essendant under its wing, Staples now has a stronger position within the B2B sales space, giving the retailer a differentiation point it had struggled to create.

Walgreens And CVS Expand Pharmacy Patient Pools Through Acquisitions

Walgreens will acquire the pharmacy patient prescription files and related pharmacy of 185 Fred’s stores across 10 Southeastern states for $165 million, plus the value of the related pharmacy inventory. Fred’s will continue operating its retail stores at most of the locations after the pharmacies close. The deal will increase the presence of Walgreens pharmacies in the Southeast. Affected Fred’s patients will be transferred to the Walgreens network, giving them access to pharmaceutical services at all 9,800 locations worldwide.

German Department Stores Merge As Competition With Amazon Heats Up

Hudson’s Bay Company (HBC) and Signa Retail Holdings, a European retail and real estate operator, have agreed to merge two of Germany’s largest department stores. Under the agreement, HBC’s Galeria Kaufhof and Signa’s Karstadt will merge to form Europe’s third-largest department store chain by revenue, after Spain’s El Corte Ingles and UK’s Marks & Spencer (M&S). The combined department store group will generate annual sales of approximately 5.4 billion euros ($6.3 billion USD).

Insight Venture Partners Acquires Majority Stake In Episerver For $1.16 Billion

Episerver, a digital experience and content management software platform, has been acquired by Insight Venture Partners, a New York based global private equity firm. Insight is buying a majority stake in Episerver for $1.16 billion. With the investment, Episerver seeks to expand further in the U.S. through accelerated product development, go-to-market sales and marketing and branding initiatives.

Serta Simmons Bedding Merges With Tuft & Needle

Serta Simmons Bedding (SSB) has entered into a definitive agreement to merge with direct-to-consumer mattress company Tuft & Needle (T&N). Financial terms of the deal were not disclosed, and the merger is expected to close within the next 60 days. Through this merger, SSB aims to strengthen its position in the market and expand its offerings in the direct-to-consumer segment. Additionally, SSB’s retail partners will have access to new offerings including consumer insights, methods for generating higher foot traffic and consumer-centric innovations designed to drive growth in the evolving market. SSB plans to launch the retailer program in early 2019; and T&N will lead the development of these omnichannel marketing tools.

Best Buy Acquires GreatCall For $800 Million, Expands Eldercare Services

Best Buy has acquired GreatCall, a provider of connected health and personal emergency response services to more than 900,000 subscribers, for $800 million in cash. The electronics retailer has sought new growth opportunities since implementing its Best Buy 2020 strategy in March 2017, particularly through building out its IoT and smart home services and expanding its Geek Squad tech support services. The acquisition of GreatCall falls in line with Best Buy’s growth strategy and fits in with the company’s desire to address key human needs with the help of technology products, services and solutions.

Sears CEO Eddie Lampert Bids $400 Million For Kenmore Brand

Sears Holdings CEO Eddie Lampert is offering to buy the retailer’s Kenmore brand for $400 million through his hedge fund, ESL Investments. The bid comes four months after Lampert wrote a letter to the Sears Board of Directors, urging the company to divest the brand as well as the Sears Home Improvement and PartsDirect businesses. A separate proposal valued Sears Home Improvement at $70 million, with a potential extra $10 million if the company met certain financial benchmarks.

VF Corp. Plans To Spin Off Jeans Business Into Separate Company

VF Corporation, the parent company of apparel and footwear brands such as Vans, The North Face, Dickies, Reef and Timberland, is spinning off its Wrangler and Lee brands into a separate public company. According to a WSJ report, VF Corp. had been exploring strategic alternatives for its jeans business, including a possible spinoff or sale. The newly formed company will hold VF’s jeans business, which includes Wrangler, Lee, Rustler and Rock & Republic, and its 80 VF outlet store operations. These businesses generate approximately $2.5 billion in annual revenue, the company said.

United Natural Foods Acquires Supervalu For Nearly $3 Billion

Grocery giant Supervalu has finally found a buyer. United Natural Foods (UNFI) has acquired Supervalu for approximately $2.9 billion, including debt. Executives at Supervalu and UNFI said the combined firm will sell the retail business, including the 78-store Cub Foods grocery chain, that accounted for about one-third of Supervalu's $14 billion annual revenue.  Under CEO Mark Gross, who has led Supervalu since 2016, the grocer pivoted more towards a wholesaler role, purchasing other wholesalers including Unified Grocers and Associated Grocers in 2017.Supervalu’s other retail operations include the regional chains Shoppers, Shop ’n Save, Farm Fresh Food & Pharmacy and Hornbacher’s.

Chef’d Acquired By Food Tech Company After Suspending Operations

More than a week after suspending operations, citing funding and expense issues, meal kit seller Chef’d has found a buyer. True Food Innovations, a food technology, CPG and manufacturing company, has acquired all assets of Chef’d, including plant, property, equipment, brand and intangible assets, for an undisclosed amount. The purchaser plans to consolidate these assets into the existing businesses of True Food Innovations. True Food will continue to sell Chef’d meal kits in grocery stores and other retail outlets, but will suspend its sprawling e-Commerce offerings while it works to become profitable, according to The Wall Street Journal.
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