Brookstone Agrees to Sale
Merrimack, N.H., Amajority of Brookstone shareholders voted to approve the company’s sale to a consortium led by OSIM International Ltd., a Singapore-listed healthy lifestyle products company. Brookstone shareholders will get $20 per share in cash. Based on the company’s 20.44 million common shares outstanding, the deal values Brookstone at $408.8 million.
“We believe this merger offers great value to our shareholders and a tremendous opportunity for our company going forward,” said Brookstone’s Michael Anthony, CEO, president and chairman. “OSIM will be a strategic partner with product development capabilities extremely complementary to those of Brookstone’s. In addition, we believe that OSIM’s expertise in operating stores in Asia will help Brookstone to expand its retail concept globally.”
7-Eleven Spurns Japanese Offer
New York City, 7-Eleven, the world’s largest convenience store chain, rejected an “inadequate” tender offer from its parent company Seven-Eleven Japan. The Japanese bid of $32.50 per share was deemed too low, and consequently not in the best interests of shareholders. 7-Eleven added that its advisors are in conversation about an increased offer, though a higher bid is not assured.
Rite Aid Posts Q2 Loss
Camp Hill, Pa., Rite Aid lost $1.6 million in the second quarter, compared to net income of $9.9 million in the same quarter last year. Same store sales increased 0.5%—consisting of a 0.8% decline in pharmacy and a 3.0% gain in front-end same-store sales.
Revenues for the quarter were $4.13 billion, up from $4.12 billion in the prior-year quarter.
The company remains on track to make its target of 80 new and relocated stores by the end of fiscal 2006.