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Stanley Black & Decker $SWK to Acquire @Craftsman Tools from Sears $SHLD for $900M

Stanley Black & Decker $SWK to Acquire @Craftsman Tools from Sears $SHLD for $900M

Sears Holdings initiated a formal process to explore strategic alternatives for its Kenmore, Craftsman and DieHard brands, and its Sears Home Services, with the assistance of Citigroup Global Markets and LionTree Advisors, as reported last year by ExitHub. The deal provides Stanley Black & Decker with the rights to develop, manufacture and sell Craftsman-branded products in non-Sears Holdings retail, industrial and online sales channels across the U.S. and in other countries. As part of the agreement, Sears Holdings will continue to offer Craftsman-branded products, sourced from existing suppliers, through its current retail channels via a perpetual license from Stanley Black & Decker, which will be royalty-free for the first 15 years after closing, then 3% thereafter. Today only approximately 10% of Craftsman-branded products are sold outside of Sears Holdings and the agreement will enable Stanley Black & Decker to significantly increase Craftsman sales in these untapped channels. “Craftsman is a legendary, American brand with tremendous consumer awareness built on a legacy of producing quality products at a great value,” said Stanley Black & Decker President and CEO James M. Loree. “This agreement represents a significant opportunity to grow the market by increasing the availability of Craftsman products to consumers in previously underpenetrated channels. We intend to invest in the brand and rapidly increase sales through these new channels, including retail, industrial, mobile and online. To accommodate the future growth of Craftsman, we intend to expand our manufacturing footprint in the U.S. This will add jobs in the U.S., where we have increased our manufacturing headcount by 40% in the past three years. Sears Holdings’ Chairman and Chief Executive Officer Edward S. Lampert stated, “We are pleased to reach this agreement, after determining that externalizing the Craftsman brand would accomplish our goals of driving value for Sears Holdings and positioning Craftsman for future growth. This transaction represents a significant step in our ongoing transformation to a membership focused business model.” Lampert, who is also the founder, chairman and CEO of ESL Investments, his hedge fund based in Greenwich, Connecticut, engineered today’s Sears Holdings by merging Kmart and Sears Roebuck in 2005. Existing sales of Craftsman products outside the Sears Holdings and Sears Hometown distribution channels, which will be assumed immediately upon closing by Stanley Black & Decker, were approximately $200 million over the last 12 months. The sale of Craftsman branded products is expected to contribute approximately $100 million of average annual revenue growth for approximately the next ten years. The transaction is expected to be accretive to earnings by approximately $0.10-$0.15 per share in year one, increasing to approximately $0.35-$0.45 by year five and to approximately $0.70-$0.80 by year ten, excluding approximately $20 million of deal-related costs. The deal, which was approved by the Boards of Directors of both companies, is expected to close during 2017, subject to customary closing conditions and regulatory approvals. Stanley Black & Decker, an S&P 500 company, is a diversified global provider of hand tools, power tools and related accessories, mechanical access solutions and electronic security solutions, healthcare solutions, engineered fastening systems, and more. Sears Holdings is a leading integrated retailer focused on seamlessly connecting the digital and physical shopping experiences. Sears Holdings is home to Shop Your Way, a social shopping platform offering members rewards for shopping at Sears and Kmart as well as with other retail partners. The company operates through its subsidiaries, including Sears, Roebuck and Co., founded in 1886, and Kmart Corp., founded in 1899, with full-line and specialty retail stores across the United States. Photo: Edward S. Lampert, Chairman and CEO, Sears Holdings Corp, and ESL Investments.]]>

Permira to Acquire German Fashion Retailer Schustermann & Borenstein from Ardian

Permira to Acquire German Fashion Retailer Schustermann & Borenstein from Ardian

Permira, together with Cinven and Mid Europa, recently acquired Poland-based Allegro Group from Naspers Ltd (JSE: NPN.SJ) (LSE: NPSN) for $3.25 billion, as previously reported by ExitHub. The consumer technology industry is a key area of focus for Permira which has significant experience in backing global brands, such as Hugo Boss, Valentino and Dr. Martens, and supporting the expansion of leading global technology companies like Informatica, TeamViewer, P&I and Magento. Wolfgang Pietzsch, Managing Director Mid Cap Buyout at Ardian, added, “We are very happy to have supported Schustermann & Borenstein and its founding families for more than four years. Significant growth has been achieved through a multitude of avenues in the company’s stationary and online business both organically, such as a new store opening in Vienna and the internationalization of the online business, as well as through an acquisition in Switzerland.” The deal, which is subject to regulatory approvals, is expected to close in the fourth quarter of 2016. In the past 30 years, the Permira funds have made over 200 private equity investments in five key sectors: Consumer, Financial Services, Healthcare, Industrials and Technology. Permira employs over 200 people including 130 investment professionals in 14 offices across North America, Europe and Asia. Founded in 1985, and operated under the Schroder Ventures brand until 1997, Permira advises funds with a total committed capital of €31 billion. Ardian, founded in 1996 and led by Dominique Senequier, is an independent private investment company with $60 billion in assets managed or advised in Europe, North America and Asia.]]>

@BainCapital to Transfer Edcon Control to Creditors in Debt-For-Equity Swap

@BainCapital to Transfer Edcon Control to Creditors in Debt-For-Equity Swap

Bain Capital and Goldman Sachs (NYSE: GS) agreed to acquire a majority stake in Carver Korea, a leading Korean cosmetics company, in a deal valued at over $300 million. “This important milestone in the history of the Edcon Group follows the recent payment deferral implemented in May 2016 and the securing of R1.5 billion of bridge financing under new Facilities A1 and A3 of the existing Super Senior Liquidity Facility Agreement,” said Edcon Group’s chief executive Bernie Brookes. “Our operational turnaround plans are already well underway and the finalisation of the process to reduce our debt will ensure Edcon remains the largest South African clothing retailer, but that it also returns to its former status as the leading clothing retailer in South Africa,” he added. The restructuring is expected to materially improve the liquidity position of the Edcon Group to ensure ongoing operations as well as address the current high structural leverage and cash interest burden on the operating company, the company said. The extended maturities and additional funding should facilitate the ongoing operational turnaround and allow management to refocus onto running the business and executing its strategic plan. The restructuring is also expected to alleviate concerns of key stakeholders such as suppliers, landlords and credit insurers. A new governance structure will be put in place, including provisions relating to transfers of shares, pre-emption rights, tag-along rights and drag-along rights, board composition and reserved matters requiring the consent of specific majorities of shareholders, the company said. Johannesburg-based Edcon has been in operation for more than 80 years and has expanded its footprint to include 1,542 stores as at March 26, 2016. Edcon’s Edgars division includes Edgars, Boardmans, Edgars Active, Edgars Shoe Gallery, Red Square and the group’s mono-branded stores such as Topshop Topman, Tom Tailor, Dune, Lucky, T.M. Lewin, Lipsy, Salsa, River Island, Vince Camuto, Calvin Klein, Inglot, La Senza and Accessorize whose products, are also available through Edgars stores, serving principally middle and upper income markets. Edcon’s Discount division includes Jet, JetMart and Legit, serving principally middle to lower income markets; and CNA, the group’s stationery, books, games, movies, music, hi-tech electronics and mobile retailer. The group offers credit and insurance products to its customers through strategic partnerships with third parties. Edcon’s primary operations are in South Africa where the group generated 88 percent of its retail sales in fiscal year 2016. The rest of its operations are in neighbouring Namibia, Botswana, Lesotho, Swaziland, Mozambique, Ghana, Zimbabwe and Zambia, where it operates 213 retail outlets.]]>

Ben-Moshe Closes Buyout of Alon Blue Square Israel

Ben-Moshe Closes Buyout of Alon Blue Square Israel

Azrieli Group Ltd. (TASE: AZRG) received approval from the Israel Antitrust Commissioner for the sale of its gas station company Sonol, to David Wiessman‘s Israel Oil and Gas Fund, for 364 million shekels ($96 million). Sonol operates about 240 gas stations and more than 190 convenience stores throughout Israel. Wiessman, a former executive chairman of Alon Blue Square and Dor Alon Energy, serves as chairman of Alon USA Partners. In July, its Dallas, Texas-based affiliate Alon USA Energy Inc. (NYSE: ALJ) hired JPMorgan  to explore strategic alternatives including a potential sale of Alon USA Energy, whose largest shareholder with a stake of 48% is Delek US Holdings  (NYSE: DK). A few weeks ago, Delek US sold its own 348 MAPCO Express convenience stores in the US to Chile’s giant COPEC SA (SNSE: COPEC) for $535 million. Alon Blue Square’s Fueling and Commercial Sites segment develops and operates vehicle gas stations, adjacent commercial centers, and independent convenience stores. Its Tel Aviv Stock Exchange (TASE) listed 63.13% subsidiary Dor Alon Energy Israel (1988) Ltd., is one of the four largest fuel retail companies in Israel operating 211 gas stations and 220 convenience stores in different formats under the Alonit and Super Alonit, and AM:PM brands. Its Houseware and Textile segment operates as a retailer and wholesaler in houseware and textile activities. This segment operates 112 stores through its TASE traded 77.51% subsidiary, Na’aman Group (NV) Ltd., under the Naaman and Vardinon brands. Alon Blue Square’s Real Estate segment owns, leases, and develops commercial centers, logistics centers and offices, and land, as well as develops income producing commercial properties and projects, including wholesale market residency projects in Tel-Aviv through its TASE traded 53.92% subsidiary Blue Square Real Estate Ltd. Ben-Moshe is the founder and chairman of the Extra Group, based in Cologne, Germany. In 2014, Ben-Moshe acting in partnership with Argentine tycoon Eduardo Elsztain, acquired joint control of Israel’s biggest conglomerate IDB Group through a massive capital injection, after a heated battle with bondholders and previous controlling shareholder Nochi Dankner. In May 2015 he was forced out as co-chairman of IDB. In 2007 he started a private equity fund together with Dr. Barnim Jeschke, in order to invest in new technologies, focusing initially on the renewable energy sector. Between 2003-2007 he built a leading VoIP based network in Europe, in partnership with Telefonica Deutschland GmbH, and in cooperation with Cisco. In earlier years, after dropping out of Bar-Ilan University, he founded Cyber Gate, a software development company which developed billing systems and micropayment solutions, writing the computer program himself.]]>

Syck Amore: Landlords $SPG, $GGP JV to Take Over @Aéropostale for $243M

Syck Amore: Landlords $SPG, $GGP JV to Take Over @Aéropostale for $243M

The Wall Street Journal, and is subject to court approval. The move comes two weeks after rival Los Angeles-based teen clothing retailer American Apparel LLC (AA), one of the largest apparel manufacturers in North America, reportedly hired investment bank Houlihan Lockey to explore a sale of the company, which was founded in 1989 by its controversial former chairman and CEO Dov Charney. In February 2016, American Apparel itself exited bankruptcy and is now privately owned by its creditors under a financial restructuring plan whereby the company converted $230 million in a debt-for-equity swap. AA’s new owners include Standard General, Monarch Alternative Capital, Coliseum Capital, and Goldman Sachs Asset Management. Two years ago, Aéro tied the knot for a $150 million senior secured credit facility with New York private equity firm Sycamore Partners, in conjunction with a sourcing arrangement with Sycamore’s portfolio company MGF Sourcing. However, the deal with Sycamore came back to haunt Aéro. On May 4, 2016, Aéropostale took the next steps in its ongoing business transformation saga by filing voluntary Chapter 11 bankruptcy petitions, closing 113 U.S. locations and all of its 41 stores in Canada. Aéropostale, headquartered in New York City, has about 800 stores in the U.S. and Puerto Rico, and through licensing arrangements around the world, but its footprint is expected to still be reduced drastically. The first Aéropostale store was opened in 1987 by Macy’s in the Westside Pavilion Mall in Los Angeles. The store was the brainchild of R.H. Macy Co. Aéro posted 13 straight quarterly losses and reported a net loss for fiscal 2015 of $136.9 million, which are provoking severe liquidity constraints. The company also indicated that it failed to resolve a vendor dispute with MGF, which “is causing a disruption in the supply of some merchandise.” “Under normal conditions, we would be very optimistic about our potential for financial growth throughout the first half of 2016,” said Aéropostale’s CEO Julian Geiger earlier this year. “Regrettably, our short-term visibility is limited by our current vendor dispute.” Sycamore, with more than $3.5 billion in capital under management, specializes in retail and consumer investments. The firm’s portfolio includes Talbots, Stuart Weitzman, Nine West, Kurt Geiger, Coldwater Creek, Belk, Dollar Express, Hot Topic, and others. Sycamore was founded in 2011 by Stefan Kaluzny and Peter Morrow, who previously worked at San Francisco private equity firm Golden Gate Capital. Given Sycamore’s aggressive retail shopping spree, The New York Times once referred to the pair as, “no retail parvenus.” Although Aéropostale continues to struggle with falling sales, its rivals such as American Eagle Outfitters Inc (NYSE: AEO) and Abercrombie & Fitch Co (NYSE: ANF) have managed to turn around their businesses by controlling inventories and responding faster to changing fashion trends.]]>