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M&A‌ ‌Report:‌ Taubman, Supreme, and ShopRunner In‌ ‌the‌ ‌News‌ ‌

M&A‌ ‌Report:‌ Taubman, Supreme, and ShopRunner In‌ ‌the‌ ‌News‌ ‌

In‌ ‌keeping‌ ‌with‌ ‌our‌ ‌mission‌ ‌to‌ ‌provide‌ ‌comprehensive‌ ‌advertising‌ ‌analysis,‌ ‌MediaRadar‌ ‌puts‌ together‌ ‌a‌ ‌report‌ ‌of‌ ‌the‌ ‌most‌ ‌important‌ ‌mergers‌ ‌and‌ ‌acquisitions‌ ‌news‌ ‌each‌ ‌week.‌ ‌Stay‌ ‌in‌ ‌the‌ loop,‌ ‌whether‌ ‌you‌ ‌sell‌ ‌advertising‌ ‌space‌ ‌or‌ ‌focus‌ ‌on‌ ‌business‌ ‌development.‌ ‌ ‌

This‌ ‌week, Simon Property Group acquired Taubman Center, Inc. after a 10-month delay due to the COVID-19 pandemic. VF Corporation bought street-and-skatewear company Supreme, ‌and FedEx gained e-commerce platform ShopRunner.

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Simon Property Group (finally) buys Taubman Centers, Inc.

After revising and amending the terms of their previous merger agreement, mall owner Simon Property Group, Inc. announced that it has completed the acquisition of 80% ownership in Taubman Centers, Inc. for $3.4 billion. 

Taubman Centers is a real estate investment trust that invests and manages outlet malls in the U.S. and Asia. As of December 31, 2019, Taubman owned interests in 24 shopping centers. 

The original agreement between the two REIT companies was announced in February of this year and then swiftly followed by the coronavirus pandemic, which devastated the retail sector. 

With the deteriorated financial conditions in both companies, Simon tried to back out of the deal in June, citing Taubman failed to take appropriate and necessary steps to mitigate the impact of the pandemic on its business and properties. Ultimately, the two sides worked out a compromise and agreed to a deal with an 18% price cut and the completed deal materialized. 

VF Corporation expands their apparel empire by acquiring Supreme

VF Corporation, an apparel and footwear company that owns brands like The North Face, Vans, Timberland, and Dickies, announced that it has completed the acquisition of Supreme for $2.1 billion. The purchase price is more than double Supreme’s valuation of $1 billion when Carlyle Group purchased a 50% stake in 2017. 

Supreme is a New York-based privately-owned street-and-skatewear brand founded in 1994, and it has since become a streetwear brand preference for skaters and local artists. The company boasts 12 store locations and sells apparel, accessories, and footwear through direct-to-consumer channels, primarily digital. 

According to VF, Supreme has a long-standing relationship with VF’s Vans, The North Face, and Timberland brands, and the acquisition of Supreme will fortify the relationship and “further accelerate VF’s hyper-digital business model transformation.”

FedEx gains ShopRunner, AmazonPrime’s lesser-known competitor

FedEx Corporation has completed its acquisition of e-commerce platform ShopRunner. 

A clear competitor to the better known Amazon Prime, ShopRunner operates as a yearly membership service providing free two-day shipping at participating online stores, as well as free returns and member-exclusive discounts. 

The company’s logistics services currently cover more than 100 retailers including Neiman Marcus, American Eagle Outfitters, Kiehl’s, and the NBA store. With so many brands already attached to it, ShopRunner will help FedEx establish a secure foothold in the e-commerce space, connecting new customers with their retailers. 

The company will operate as part of a new group inside of FedEx Services named FedEx Dataworks. According to analysts, for the acquisition to prove beneficial in the long run ShopRunner must continue to grow and be adopted by major retailers like Target and/or Walmart.

In‌ ‌Other‌ ‌News‌ ‌

Other notable events this week:

  • Global spice brand McCormick & Co. Inc. has acquired natural flavorings company FONA International for $710 million in cash, its second major acquisition in two months
  • British online retailer The Hut Group is making a bet on the United States following its September IPO by acquiring US-based skincare and beauty retail brand Dermstore from Target Corporation in an all-cash deal for $350 million.
  • JPMorgan Chase & Co. is ending 2020 with an interesting acquisition. The multinational financial company has announced its intent to acquire the Global Loyalty business of cxLoyalty Group Holdings.
  • According to CNBC, grocery-delivery service Instacart Inc., which gained heightened popularity due to the COVID-19 pandemic this year, has picked Goldman Sachs Group to lead its initial public offering early next year.