On Monday, Shares of Ascena Retail Group Inc. (NASDAQ:ASNA), lost -0.99% to $14.07.
Ascena Retail Group, and ANN INC. (ANN) declared that they have reached a definitive merger agreement under which ascena will acquire ANN INC. for a combination of cash and stock in an accretive transaction.
Upon closing, ANN INC. stockholders will receive $37.34 in cash and 0.68 of a share of ascena common stock in exchange for each share of ANN common stock. Based upon the closing price of ascena stock on May 15, 2015, this implies a price per share of $47.00, a 21.4% premium over the closing price of ANN shares on Friday, May 15, 2015. At closing, ANN stockholders will own about 16% of ascena.
The transaction, which has been unanimously approved by the Boards of Directors of both companies, is predictable to close in the second half of 2015, subject to customary closing conditions, counting, among other things: the expiration or early termination of the waiting period under the Hart-Scott-Rodino (HSR) Antitrust Improvements Act of 1976 and approval of the merger by the holders of a majority of the outstanding shares of ANN. The transaction does not require approval by ascena stockholders.
ascena has identified $150 million in annualized run rate synergies in the combination that it anticipates to generate over a three-year period. The transaction aligns seamlessly with ascena’s platform strategy and shared services model, designed to enable an effective, rapid and comprehensive back office integration process. Synergies comprise sourcing and procurement, distribution, logistics and other efficiencies. Not taking into account transaction and integration expenses, the acquisition is predictable to be significantly accretive to EPS in the first year post closing, accelerating to greater than 20% accretion to EPS thereafter. Additionally, ascena anticipates the combination to generate noteworthy cash flow while both maintaining appropriate levels of capital expenditures and enabling rapid deleveraging.
Ascena Retail Group, Inc., through its auxiliaries, operates as a specialty retailer of apparel for women, and tween girls and boys. It operates through five segments: Justice, Lane Bryant, maurices, dressbarn, and Catherines segments.
Shares of ANN INC. (NYSE:ANN), surged 19.87% to $46.40, during its last trading session, hitting its highest level.
ANN INC., through its auxiliaries, engages in the retailing of women’s apparel, shoes, and accessories under the Ann Taylor and LOFT brands. As of March 13, 2015, it operated 1,030 retail stores in 47 states, the District of Columbia, Puerto Rico, and Canada comprising 245 Ann Taylor stores, 537 LOFT stores, 116 Ann Taylor Factory stores, 127 LOFT Outlet stores, and 5 Lou & Grey stores.
At the end of Monday’s trade, Shares of Sprint Corporation (NYSE:S), lost -0.21% to $4.81.
Sprint Corporation, Chief Financial Officer Joe Euteneuer will speak at the 43rd Annual J.P. Morgan Global Technology, Media and Telecom Conference in Boston on Tuesday, May 19 at 9:20 a.m. ET.
Sprint Corporation provides wireless and wireline communications services to consumers, businesses, and government users in the United States, Puerto Rico, and the U.S. Virgin Islands. It operates in two segments, Wireless and Wireline.
Finally, Starbucks Corporation (NASDAQ:SBUX), ended its last trade with 0.75% gain, and closed at $51.18.
Starbucks Corporation, declared that it has reached a letter of intent with leading music streaming service, Spotify®, to establish a multi-year relationship that will link its 7,000 company-operated stores in the U.S. and 10 Million My Starbucks Rewards® loyalty members with Spotify’s more than 60 Million global users to offer a first-of-its-kind music ecosystem. This interconnectivity will allow Starbucks MSR members unique access to Starbucks music on Spotify, the ability to influence in-store playlists in addition to opportunities for Starbucks MSR members to earn “Stars as Currency.”
Through a phased rollout later this fall in Starbucks® U.S. company-owned locations, followed shortly thereafter in Canada and the United Kingdom, the agreement specifies that Starbucks and Spotify will collaborate on a next generation music ecosystem. As part of the agreement, Spotify Premium will be promoted in these stores.
Coming first, Starbucks 150,000 U.S.-based partners (employees) will receive a Spotify Premium subscription, followed shortly thereafter by partners in Canada and the U.K. This fall, Starbucks partners can assist shape the in-store music programming using tools offered by Spotify. These partner-influenced playlists will then be accessible on Spotify via the Starbucks Mobile App so that customers can stream music anywhere, anytime from their mobile device.
Starbucks Corporation operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company operates in four segments: Americas; Europe, Middle East, and Africa; China/Asia Pacific; and Channel Development.
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