Mergers & Acquisitions

Bad weather and a reduction in food stamps didn’t seem to have an effect on Kroger during the fourth quarter as the retailer posted a 4.3% increase in identical-store sales, meaningful profit improvement and offered an optimistic outlook for the year ahead.

Irvine, Calif. -- Auction.com,  the world’s largest online real estate marketplace, has received a $50 million investment from Google Capital. As part of the investment, one representative from Google Capital will join the company’s board of directors and another will take a board observer position.

New York -- Private-equity firm Cerberus Capital Management has reached a preliminary agreement to buy Safeway Inc. for over $9 million, the Wall Street Journal reported. The deal is subject to board approval.

As part of the deal, Cerberus would pay roughly $40 a share for Safeway.

The Kroger Co., which recently completed its acquisition of Harris Teeter, reportedly was also interested in making a bid for Safeway. Even if a deal is announced between Cerberus and Safeway, Kroger could still mount a bid.

The months-long back and forth is over. The Men's Wearhouse will acquire all outstanding shares of Jos. A. Bank’s common stock for $65 per share in cash, or total consideration of $1.8 billion. The boards of directors of both companies have unanimously approved the transaction.

Together, Men's Wearhouse and Jos. A. Bank will have more than 1,700 stores in the U.S., making it the fourth largest U.S. men's apparel retailer with approximately 23,000 employees and sales of $3.5 billion on a pro forma basis.

Tampa, Fla. — RMC Property Group has acquired a 60,000-sq.-ft. shopping center in Palm Harbor, Fla., for $6.75 million, or $112 per square foot. It is located at the intersection of U.S. Highway 19 and Nebraska Avenue.

Anchor retailer Office Depot leases 100% of the center, which was built in 1997.

Houston – Stage Stores' fiscal fourth-quarter net income plunged 30%, stung by a charge tied to the sale of its Steele's off-price division and softer revenue. Its adjusted earnings, however, topped analysts' estimates.

Stage Stores announced that it is selling its off-price retail division Steele's to Hilco Global Retail Group in an equity deal.

For the quarter ended Feb. 1, Stage Stores earned $24.9 million, down from $35.8 million in the year-ago period.  

The Children’s Place is the latest retailer to say heavy promotions and bad weather hurt its fourth-quarter results.

The company’s net earnings in the quarter ended Feb. 1 dropped 18% to $15.7 million, from $19.1 million in the year-ago period, which had an extra week. It reported net sales of $467.5 million for the quarter, down from $509.2 million in the year-ago period. Same-store sales declined 4.3%.

Cincinnati – The Kroger Co. earned a better-than-expected $422 million in its fourth quarter, down from $462 million in the year-ago period, which included an additional week of sales. The nation’s largest supermarket operator issued a better-than-expected profit for the year ahead.