Mergers & Acquisitions

It seems like everybody wants to get in the outlet business these days. In particular, there are a growing number of “traditional mall” developers that seem to be seriously considering -- or in some cases, actively pursuing -- the development of outlet centers or the conversion of existing traditional mall assets into outlets. On the heels of Gap’s announcement to close 200 of their full-price stores by 2013 and concentrate on expanding their Gap outlets and Banana Republic Factory Stores, I understand why developers are seriously thinking about outlet centers.

Operating internationally is full of pitfalls and political peculiarity, as Walmart has again discovered in South Africa where various government officials are attempting to wring additional concessions from the company related to its acquisition of Massmart.

Operating internationally is full of pitfalls and political peculiarity, as Walmart has again discovered in South Africa where various government officials are attempting to wring additional concessions from the company related to its acquisition of Massmart.

SALISBURY, N.C. — New stores, higher retail inflation and positive calendar impact drove sales up for Delhaize America, the U.S. sector of the Delhaize Group, during the second quarter ended June 30.

The division, which operates such banners as Food Lion, Hannaford and Bottom Dollar Food, reported that revenues rose 4.3% to $4.9 billion, while comparable-store sales increased 1.6%. Operating profit, however, dropped 2.7% to $205 million.

Milan -- Luxottica Group announced that it has entered into an agreement to acquire Erroca, which operates more than 60 sunglass stores in Israel. Over time, the stores will be rebranded under the Sunglass Hut brand.

The deal marks Luxottica's entry into the Israeli sunglass specialty store market, although the company already has a solid presence in the country through its wholesale division.

NORTHFIELD, Ill. — Kraft Foods is planning to create two independent public companies, which will include a global snacks business and a North American grocery business.

The company expects to create these companies — the high-growth global snacks business, which carries an estimated revenue of approximately $32 billion and the high-margin North American grocery business, which touts an estimated revenue of approximately $16 billion — through a tax-free spinoff of the North American grocery business to Kraft Foods shareholders.

New York  City -- The Great Atlantic & Pacific Tea Company (A&P) has asked U.S. Bankruptcy Court in White Plains, N.Y., for a second extension of its deadline to submit an exclusive plan of reorganization to its creditors.

The supermarket operator is looking for an extension to Jan. 16, 2012, from a previous deadline of Dec. 31, 2011. In court papers, it said the extension  would provide it with "the very best opportunity for a successful exit from Chapter 11."
 

WOONSOCKET, R.I. — CVS Caremark posted second-quarter results that were at the high end of its guidance and narrowed its 2011 outlook on continued confidence. But it was the PBM business — and the potential merger of PBM rivals Express Scripts and Medco Health Solutions — that was top of mind for many industry observers, and was a topic that CVS Caremark president and CEO Larry Merlo hit head on at the start of Thursday morning’s conference call.