Mergers & Acquisitions

Starbucks Coffee Company has closed the biggest transaction in its history.    The coffee giant is buying the remaining 50% share of its East China business from long-term joint venture partners, Uni-President Enterprises Corporation and President Chain Store Corporation. The deal is worth approximately $1.3 billion (USD) — the largest single acquisition in the company’s history, according to Starbucks.  

A 40-year-old mall in San Francisco’s East Bay that was put on the auction block has been snatched up by a partnership that pledges to revitalize the “irreplaceable” property.   New owners LGB Real Estate Companies and Aviva Investors see a successful, mixed-use future for the 1.1 million-sq.-ft. retail center.  

Churchill and the RAF weren’t available to head off this German invasion. The proliferation of German discount grocers Aldi and Lidl in the U.K. over the past decade carved out a new battlefield for Tesco, Sainsbury’s, Asda, and Morrisons, and they are still mired in the mud. Second-quarter results released by market researcher Kantar showed the Germans growing 19% over last year, while the British Big Four edged up less than 2%.

Brands just can’t escape a challenging retail environment — a main reason Starbucks is pulling the plug on its Teavana operation.   Just hours after the coffee giant announced it would buy out the remaining 50% share of its East China business from its joint venture partners for about $1.3 billion — its biggest acquisition, ever — Starbucks is cutting loose its Teavana division.  

The largest U.S. chain dedicated to recreational vehicles is acquiring a new company.   Camping World Holdings announced that it will purchase TheHouse.com, an online retailer specializing in bikes, sailboards, skateboards, wakeboards, snowboards and outdoor gear. Both companies will maintain distinct brands, with Camping World focusing on the outdoor camping and RV industry, and TheHouse.com continuing to provide its offering to shoppers with active outdoor lifestyles.  

Carter’s credits its U.S. retail and international segments, and its new acquisition for a jump in its second quarter sales.   Net income for the quarter ended July 1, increased $1.7 million, or 4.8%, to $37.9 million, compared to $36.2 million, in the second quarter of fiscal 2016. Earnings per diluted share was or $0.78, which beat analyst expectations of $0.71 per share, according to Zacks Investment Research.  

Trending Stores: No two stores are exactly alike at Warby Parker. But the popular eyewear company’s new store in Los Angeles, above, is a particular standout for its celebration of Hollywood’s moviemaking history. The store combines Warby Parker’s signature library-style design and fixtures with such location-specific elements as a classic movie theater-styled marquee with rotating titles, a Hollywood-themed mural, and a display of movie clapboards behind the checkout.

Amazon’s Prime Day may have boosted the company’s second quarter sales, but the event wasn’t enough to keep its earnings on track.   The online giant’s net income for the second quarter, ended June 30, was $197 million, or $0.40 per diluted share, compared with net income of $857 million, or $1.78 per diluted share, in second quarter 2016. Earnings also drastically missed analyst expectations of $1.42 per share, according to consensus estimates from Thomson Reuters.