Latest news with #AbigailSummerville
Yahoo
3 days ago
- Business
- Yahoo
Walgreens, Authentic Brands, Kourtney Kardashian among those evaluating Rite Aid assets, sources say
By Abigail Summerville NEW YORK (Reuters) -Pharmacy chain Walgreens and reality star turned entrepreneur Kourtney Kardashian are among those picking over the remaining assets in Rite Aid's bankruptcy, according to two people familiar with the matter. In addition to Walgreens, brand management companies Authentic Brands Group, WHP Global and Marquee Brands have been evaluating Rite Aid's intellectual property and potentially its loyalty program, according to the people who asked not to be named because the process is private. All three brand management companies have bought the IP of other retailers out of bankruptcy. Authentic Brands, which owns Reebok and is a Saks Fifth Avenue investor, bought the IP of fast-fashion chain Forever 21 and luxury seller Barneys out of bankruptcy. WHP Global resurrected Toys "R" Us following its 2017 bankruptcy, while Marquee acquired fashion retailer BCBG Max Azria Group out of bankruptcy. Kardashian, co-founder of gummy vitamin maker Lemme and owner of wellness and lifestyle website Poosh, has expressed interest in Rite Aid's ice cream brand Thrifty, the people said. Rite Aid, which operates about 1,200 stores and has around 8 million customers, filed for bankruptcy in May for the second time in two years. U.S. Bankruptcy Judge Michael Kaplan already approved store closures and a sale of customer prescription files to 13 buyers including CVS Health and Walgreens. Brand management firms like Authentic, Marquee and WHP typically buy a brand's IP and then license it to operating partners which have the manufacturing, design and sales responsibilities. The pharmacy chain's Thrifty ice cream brand is sold by the scoop at counters in certain Rite Aid locations or by the carton at Rite Aid and other retailers nationwide. Thrifty launched in 1940 at a small factory in West Hollywood and counts several celebrities as customers, including Kardashian, who could buy the brand by herself or with a partner, the people said. Some consumer-focused private equity firms are also eyeing Thrifty, the sources said. Rite Aid, Walgreens, Authentic Brands, and WHP declined to comment. Marquee Brands and representatives for Kardashian did not respond to requests for comment. The current bid deadline for the remaining assets is June 18 at 5 p.m. ET (2100 GMT). Pennsylvania-based Rite Aid has struggled under a high debt load, inflationary pressures and increased competition.
Yahoo
3 days ago
- Business
- Yahoo
Walgreens, Authentic Brands, Kourtney Kardashian among those evaluating Rite Aid assets, sources say
By Abigail Summerville NEW YORK (Reuters) -Pharmacy chain Walgreens and reality star turned entrepreneur Kourtney Kardashian are among those picking over the remaining assets in Rite Aid's bankruptcy, according to two people familiar with the matter. In addition to Walgreens, brand management companies Authentic Brands Group, WHP Global and Marquee Brands have been evaluating Rite Aid's intellectual property and potentially its loyalty program, according to the people who asked not to be named because the process is private. All three brand management companies have bought the IP of other retailers out of bankruptcy. Authentic Brands, which owns Reebok and is a Saks Fifth Avenue investor, bought the IP of fast-fashion chain Forever 21 and luxury seller Barneys out of bankruptcy. WHP Global resurrected Toys "R" Us following its 2017 bankruptcy, while Marquee acquired fashion retailer BCBG Max Azria Group out of bankruptcy. Kardashian, co-founder of gummy vitamin maker Lemme and owner of wellness and lifestyle website Poosh, has expressed interest in Rite Aid's ice cream brand Thrifty, the people said. Rite Aid, which operates about 1,200 stores and has around 8 million customers, filed for bankruptcy in May for the second time in two years. U.S. Bankruptcy Judge Michael Kaplan already approved store closures and a sale of customer prescription files to 13 buyers including CVS Health and Walgreens. Brand management firms like Authentic, Marquee and WHP typically buy a brand's IP and then license it to operating partners which have the manufacturing, design and sales responsibilities. The pharmacy chain's Thrifty ice cream brand is sold by the scoop at counters in certain Rite Aid locations or by the carton at Rite Aid and other retailers nationwide. Thrifty launched in 1940 at a small factory in West Hollywood and counts several celebrities as customers, including Kardashian, who could buy the brand by herself or with a partner, the people said. Some consumer-focused private equity firms are also eyeing Thrifty, the sources said. Rite Aid, Walgreens, Authentic Brands, and WHP declined to comment. Marquee Brands and representatives for Kardashian did not respond to requests for comment. The current bid deadline for the remaining assets is June 18 at 5 p.m. ET (2100 GMT). Pennsylvania-based Rite Aid has struggled under a high debt load, inflationary pressures and increased competition.
Yahoo
03-04-2025
- Business
- Yahoo
Exclusive-Hailey Bieber explores sale of her makeup brand Rhode, sources say
By Abigail Summerville NEW YORK (Reuters) - Model Hailey Bieber is exploring a sale of her makeup brand Rhode that could be worth more than $1 billion, according to three people familiar with the matter. Bieber has tapped investment bankers at JPMorgan Chase and Moelis to find a buyer for the cosmetic brand that she launched in 2022, two of the sources said, requesting anonymity as the matter is confidential. Bieber joins a list of celebrities who have recently attempted to cash in on the popularity of consumer-focused ventures they launched in recent years. In 2021, actor Jessica Alba pulled off a successful initial public offering for her consumer goods venture The Honest Company. Rare Beauty, backed by Grammy-nominated singer Selena Gomez, has also been seeking a buyer, according to people familiar with the matter. JPMorgan and Moelis declined to comment. Rhode did not immediately respond to requests for comment. Bieber, who is married to singer Justin Bieber and is the daughter of actor Stephen Baldwin, is a social media influencer, having amassed over 50 million Instagram followers. Beauty trends such as "glazed donut skin" gained popularity after Bieber promoted her daily skincare routine. Rhode, which was named after Bieber's middle name, generates annual revenue of nearly $200 million, two sources said. The Los Angeles-based brand, which sells skincare products and makeup, has collaborated with companies such as Krispy Kreme to promote certain products. Rhode appointed former The Honest Company chief executive Nick Vlahos as its CEO last year. Sign in to access your portfolio
Yahoo
13-03-2025
- Business
- Yahoo
Couche-Tard goes on charm offensive for Seven & i with Tokyo visit
By Abigail Summerville and Anton Bridge NEW YORK/TOKYO (Reuters) - Alimentation Couche-Tard will seek to address antitrust concerns of Japan's Seven & i as the Canadian company's management kicks off a Tokyo visit to push forward talks for its $47 billion bid for the operator of 7-Eleven convenience stores. The Circle-K owner has been pursuing Seven & i for months even as it has received a frosty reception from the Japanese retail giant, in what would be Japan's largest-ever foreign buyout if the deal is completed. Couche-Tard will hold its first press conference in Tokyo on Thursday since it announced a bid for Seven & i in August as part of its efforts to win over a Japanese public sceptical of a foreign takeover of a prized national asset. On Tuesday, Couche-Tard said it was confident there was a "clear path" to overcome U.S. regulatory hurdles in its proposed acquisition of Seven & i and expressed frustration at the 7-Eleven owner's "limited engagement." Couche-Tard also said it had been working with Seven & i on a plan to divest some of their stores in the United States. Seven & i's newly appointed CEO Stephen Dacus, however, has reiterated that significant regulatory hurdles stand in the way of a deal. The firms are the top two players in the U.S. convenience store market, with about 20,000 locations between them. ANTITRUST ISSUES Couche-Tard management's trip to Tokyo and the engagement with Seven & i on antitrust concerns underscore the lengths to which dealmakers would go to ensure deal certainty amid U.S. regulatory scrutiny. To engage in detailed divestment discussions for antitrust purposes before a deal is agreed or any confidentiality agreement is signed is uncommon in transactions, deal advisers said. "I can't say I've seen a case where prior to a merger agreement being executed the entire divestiture package and buyer were set in stone and baked into the merger agreement," said Kathy O'Neill, a partner at law firm Fried Frank. But she said working on a divestiture package before a merger agreement was reached would help to potentially reduce the risk of surprise and time and effort put into chasing a deal. Tim Cornell, a litigation partner and member of the Debevoise & Plimpton's Antitrust Group, agreed the airing of antitrust concerns before a deal was announced was not typical. "In certain circumstances, buyers will test the waters with regards to a divestiture package especially where they've identified that's what is needed," he said. Couche-Tard sweetened its offer in October and has said it remained committed to the deal, after a competing $58 billion management buyout proposed by Seven & i's founding family failed to materialise. Sign in to access your portfolio
Yahoo
12-03-2025
- Business
- Yahoo
Analysis-Japan firms must get used to reverse break-up fees as Nippon Steel's $565 million penalty looms
By Anton Bridge, Abigail Summerville and Kane Wu TOKYO/NEW YORK (Reuters) -Japanese suitors face a heightened chance of U.S. targets baking in hefty termination fees to protect against a deal collapsing due to regulatory or political reasons, following Nippon Steel's stranded $14.9 billion bid for U.S. Steel. A reputation for reliability has long given Japanese firms almost a bye when so-called reverse break-up fees are broached in M&A talks, yet an increasingly protectionist U.S. has left deals at the mercy of national security and fluid trade policy. Nippon Steel is challenging the U.S. decision, taken under the administration of President Joe Biden, to block its purchase of U.S. Steel citing security concerns. If it fails, it has to pay U.S. Steel $565 million as previously agreed to cover costs incurred by the latter throughout the acquisition attempt. That prospect will do little to dampen Japanese interest in their biggest target nation yet the increased chance of outside forces scuppering deals has meant reverse break-up fees are looming larger in negotiations, said lawyers and bankers. The risk of Japanese suitors being unable to close a deal has long been seen as far lower than for companies from many other nations. Even so, U.S. boardrooms are now likely to point to the Nippon Steel deal and demand "protection" in transactions, said U.S. law firm Skadden partner Kenton King. "I think what's going to happen for a while is you will see more reverse termination fees. You'll see them at levels that aren't crazy, not 10% levels, but manageable levels that aren't too scary to people," King told Reuters. Reverse break-up fees were once almost non-existent in deals involving Japanese suitors to the extent that Western targets were even advised against negotiating them higher, lawyers said. They now feature in one in 20 domestic and cross-border deals involving listed Japanese firms, said Managing Director Tosh Kojima at DC Advisory, the international investment banking arm of Daiwa Securities. "Once extremely rare, they are occasionally seen these days, but the vast majority of Japanese boards typically do not approve them," Kojima said. "Culturally it still doesn't fly." Median reverse break-up fees worldwide over the past two years have been 4% to 5% of the target's enterprise value, including debt, but are generally lower for Japanese firms, bankers and lawyers said. Nippon Steel's $565 million is 3.8%. TAKING ON RISK Japanese merger-and-acquisition deals in the U.S. totalled $54.5 billion last year, up 35% from the year earlier, showed data from LSEG. Of deals overseas, the U.S. accounted for 53% of targets, the data showed. Japanese firms were the source of more foreign direct investment into the U.S. than companies of any other country between 2020 and 2023, U.S. government data showed. Over 60% of large deals involving public U.S. companies reviewed by investment bank Houlihan Lokey in a 2023 study contained a reverse break-up fee provision, versus 57% the year prior. Recent Japan-U.S. deals with reverse break-up provisions include Mizuho Financial Group's $587 million purchase of M&A adviser Greenhill & Co, which closed in 2023. The fee would have been $38.5 million, or 6.6% of enterprise value. "As a seller, when you see deals like that (Nippon Steel's) being blocked, you're going to be even more insistent on a break fee and buyers taking that risk," said Nick Wall, partner at law firm A&O Shearman in Tokyo. "If you can't get your boards to agree to take on that risk, the deals may fall through." For suitors of U.S. assets, reverse break-up fees are increasingly sought due to possible hurdles presented by the Committee on Foreign Investment in the United States which screens deals for national security risk. Given U.S. President Donald Trump's focus on protecting American industry, CFIUS reviews are likely to become stricter, said Michihiro Nishi, partner at Clifford Chance in Tokyo. "The Japanese companies that are serial acquirers are accustomed to a world where they don't present any special regulatory or political risks in the U.S.," said Noah Carr, M&A partner at Freshfields in Tokyo. "The risk profile and track record historically put downward pressure on the break-up fee. Now we're going to see upward pressure." Sign in to access your portfolio
