Canadian youth set for more spending power
Toronto – Continuing income growth means today’s Canadian youth will assume more spending power than their parents currently have during the course of their lifetimes, according to a new report from BMO Economics. The report cites ongoing gains in real media income and compensation, as well as expected future decreases in unemployment, in making this rosy forecast.
"Since 1996, real median income has turned higher for all age groups, rising 18 per cent to 2010," said Sal Guatieri, VP, BMO Capital Markets. "Furthermore, the annual gain of 1.2% was more than twice that in the United States during this period."
Dunkin’ Brands shuffles board
Canton, Mass. – Dunkin’ Brands Group Inc., parent company of Dunkin’ Donuts and Baskin Robbins, has named current CEO Nigel Travis, 63, as chairman of the board of directors. Board member Raul Alvarez, 57, has been appointed lead independent director of the board. These changes come as Jon Luther, 69, prepares to retire as director and chairman of the board effective May 15.
Travis was named CEO in January 2009 while Luther joined Dunkin’ Brands as CEO in January 2003 and was named chairman of the board in 2006. Alvarez is former COO and president of McDonald’s Corporation and joined the Dunkin’ Brands board in May of last year.
"All of us at Dunkin’ Brands owe Jon Luther a tremendous debt of gratitude for his leadership and his vision," said Travis. "Thanks in large part to his efforts, Dunkin’ Donuts and Baskin-Robbins are world-class brands and are well positioned for growth. On behalf of our employees and franchisees from around the world, I wish Jon and his family the very best in the years ahead."
Private equity firm TowerBrook Capital to acquire True Religion for $835 million
Vernon, Calif. — True Religion Apparel has entered into a definitive merger agreement with New York and London-based investment management firm TowerBrook Capital Partners, in a transaction valued at approximately $835 million.
Under the terms of the deal, which was unanimously approved by the True Religion board, TowerBrook will acquire all of the outstanding shares of True Religion common stock for $32.00 per share in cash. The brand, whose upscale jeans and sportswear products are sold in department stores and specialty stores around the world, also operates 124 stores in the United States and 31 international locations.
“TowerBrook’s investment is an important endorsement of the True Religion brand, its prospects and the hard work and commitment of our team,” said Lynne Koplin, interim CEO and president of True Religion. “At this critical inflection point in our business, global growth and product development effort, TowerBrook’s support and experience will be a true differentiator. TowerBrook’s long-term approach toward investment and brand stewardship will best enable True Religion to maintain its leadership position in the marketplace.”
TowerBrook has previously made control-oriented investments in companies such as Jimmy Choo, Odlo, BevMo! and Phase Eight.
True Religion also released its Q1 fiscal 2013 results Friday. Highlights include a 13.1% total net sales increase to $120.8 million from the same period in 2012, although net income declined from $10.4 million to $0.5 million. In March, True Religion CEO and founder Jeff Lubell stepped down and was named chairman emeritus and a creative consultant.