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.

DOJ Gives Preliminary Approval For $69 Billion CVS-Aetna Deal

The Department of Justice gave CVS Health preliminary approval to complete its $69 million merger with Aetna, taking the pharmacy retailer one step closer to its goal of becoming a data-driven health care company with a personal, individualized touch. CVS wants to combine its pharmacies with Aetna’s insurance business in hopes of lowering costs for insurance, prescription drugs and patient care, while providing greater price transparency to consumers in an industry that isn’t often known for that.

Barnes & Noble Gets Serious About Considering A Sale

Barnes & Noble (B&N) has entered a formal review process to evaluate strategic alternatives, including a potential sale. The decision follows interest from “multiple parties” to acquire the company, including Chairman and Founder Leonard Riggio, according to a company statement. The book store retailer also is working to thwart a hostile bid, after an unidentifiable number of parties recently began acquiring company stock. By offering preferred shares at a 50% discount to current shareholders, the company will prevent any party from accumulating 20% or more of common shares.

Walmart Acquires Plus-Size E-Commerce Fashion Retailer Eloquii

Walmart has acquired Eloquii, a plus-sized fashion retailer, marking yet another business the retail giant can add to its collection of digitally native brands. Financial terms of the acquisition have not been disclosed, but Eloquii is reportedly valued at roughly $100 million, according to CNBC. With the acquisition, Walmart is making a play into a plus-size fashion market that has plenty of room for growth. The women's plus-size market reached $21.4 billion in 2016 — less than half of its market potential of $46 billion, according to Coresight Research.The market value for women's plus-size clothing rose 23% per year between 2012 and 2016, more than double the 9.9% growth for apparel overall.

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.
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