Rue21 to be acquired by Apax Partners in $1.1 billion deal
New York — Apax Partners will acquire the 900-store, teen apparel retailer Rue 21 in a deal valued at about $1.1 billion. The private equity firm, which has a 30% stake in Rue21, also owns Cole Haan and Takko Fashion as part of its retail portfolio.
Rue21’s board approved the transaction based on a unanimous recommendation by a special committee made up of three independent directors. The company has set up a special committee of independent directors to solicit and evaluate higher bids during a 40-day go-shop period.
Rue21 has been expanding, and is on track to open its 1,000th location by the end of the year. It eventually plans to expand its presence to more than 1,700 locations.
“We are proud that a sophisticated investor such as Apax continues to believe in our core strategy and recognizes our value-generating capabilities,” said Bob Fisch, chairman, president and CEO of Rue21. “This transaction will allow us to focus on achieving our long-term objectives, including growing our business to over 1,700 stores in the U.S. and successfully implementing new initiatives such as e-commerce and rueMan."
Record results for Dollar Tree in Q1
CHESAPEAKE, Va. — Dollar Tree achieved the highest first-quarter operating margin in its history in the first quarter ended May 4.
Consolidated net sales for the first quarter ended May 4 were $1.9 billion, an 8% increase from $1.7 billion for the quarter ended April 28 last year. The value retailer saw a comparable store sales increase of 2% on top of a 6% increase for the first quarter last year.
"I am pleased with the company’s first quarter performance," said president and CEO Bob Sasser. “Sales continued to grow, and our earnings per share increased by 18%. Our stores are executing at a high level and we are well positioned with great assortments and the best values ever for Memorial Day, graduation and an exciting summer selling season.”
During the first quarter, Dollar Tree opened 94 stores, closed 2 stores and expanded or relocated 16 stores. It operates 4,763 stores in 48 states and 5 Canadian provinces.
Kohl’s donates $250,000 for Okla. tornado survivors
MENOMONEE FALLS, Wis. — Kohl’s has made a $250,000 cash donation to the American Red Cross, toward tornado relief efforts in Moore, Okla., and the surrounding area. The American Red Cross is delivering emergency supplies and services to the tornado-impacted areas.
In addition to the financial contribution, Kohl’s is encouraging its employees to volunteer in support of cleanup efforts through its Associates in Action program. In recognition of volunteer hours, Kohl’s will donate additional corporate grants to the nonprofit organizations being supported by Kohl’s employees.
“We are deeply saddened by the devastation experienced by those in and around Moore, Okla., due to the tornado that struck Monday,” said Kevin Mansell, Kohl’s chairman, president and CEO. “It is our sincerest hope that providing financial assistance and volunteer service will be of help and support to individuals and families as they work to rebuild their homes, schools and communities.”
Kohl’s Associates in Action volunteers help a range of youth-serving nonprofit organizations year-round. Through the Associates in Action volunteer program, more than 669,000 employees have donated more than 2.2 million hours of their time since 2001, and Kohl’s has donated more than $63 million to the nonprofit organizations served. This program is part of Kohl’s overall philanthropic platform, Kohl’s Cares, which is committed to supporting children’s health and education initiatives nationwide.