Brookdale Senior Living has put a bow on its acquisition of rival Emeritus, a nearly $3 billion deal that creates a company with more than 1,100 properties in 46 states. As part of the purchase, Emeritus President and CEO Granger Cobb, pictured here, has joined the board of Brentwood-based Brookdale.
SEE ALSO: Brookdale inks Emeritus purchase deal from back in February
Put Avondale Partners analyst Mark Montagna among the group of market watchers that thinks Dollar General will actually be a beneficiary of the planned Dollar Tree-Family Dollar combination. In a note to clients, Montagna writes that same-store sales at Goodlettsville-based Dollar General should get boost from the disruption of Dollar Tree's deal for up to three and a half years. He adds that gross margins, which have been slipping due to pricing pressures and the rollout of lower-margin tobacco products, should bottom out this quarter and rise all the way through 2016.
DLTR is likely to take charge of what it deems necessary for adjusting store inventory by category and product line, which should include inserting some of its successful merchandise priced at $1 and below. Such changes are likely to lead to store manager turnover, changing merchandise selection, and general customer confusion over what exactly they can count on FDO carrying.
Montagna rates Dollar General (Ticker: DG) a 'market outperform' and sees it climbing to $65 from its current level of $56 and change.
Reuters is reporting that Georgia-based FleetCor Technologies is teaming up with a group of private-equity firms to pay more than $3 billion for Brentwood-based payment processor Comdata. Fourteen-year-old FleetCor has pulled off more than 60 acquisitions and last year recorded a profit of $285 million on revenues of $895 million. The company (Ticker: FLT) has a market value of about $11 billion and employs approximately 3,500 people, 900 of them in the United States.
Comdata executives this spring said they had filed with the Securities and Exchange Commission to go public. No further details about that process have emerged since.
Shares of Dollar General are having a wild and woolly Monday after rivals Dollar Tree and Family Dollar said they will join forces in a $9.2 billion deal. After opening down a good bit from its Friday close, the stock (Ticker: DG) rose steadily as several market watchers disseminated some ho-hum opinions of Dollar Tree's purchase plans, then retreated again to enter the final half hour of trading down slightly from Friday. Volume is on track to be more than four times the daily average.
What that says about overall investor sentiment is hard to pin down. But options traders are more optimistic now about the Goodlettsville-based company's shares than at any point in the past year. The pros at Schaeffer's Investment Research have the numbers.
Regional Apple products reseller MacAuthority has been acquired by tech retail giant GameStop, which last year launched an aggressive push into selling more than video games. Through the deal, GameStop's Simply Mac unit adds six stores in five cities as well as locations on the campuses of Vanderbilt and Belmont universities. In a memo obtained by Apple Daily Report, MacAuthority CEO Mark Gregory said he will transition into a new management role as Simply Mac looks to double its store base in short order.
GameStop (Ticker: GME) acquired a minority stake in Simply Mac in the fall of 2012 and bought its remaining shares last November. Simply Mac is now part of the company's recently organized Technology Brands segment, which runs more than 270 stores. In the fiscal quarter ended May 3, that group produced an operating profit of $6.0 million on net sales of $60.2 million.
Two of Dollar General's biggest competitors are set to join forces via an acquisition worth $9.2 billion. Dollar Tree plans to buy beleaguered Family Dollar to create a company with more stores than and roughly the same sales than Goodlettsville-based Dollar General.
"This is a transformational opportunity," stated Bob Sasser, Dollar Tree's Chief Executive Officer. "With the acquisition of Family Dollar Stores, Dollar Tree will become a leading discount retailer in North America, with over 13,000 stores in 48 states and five Canadian Provinces, sales of over $18 billion, and more than 145,000 associates on our team. We will continue to operate under the Dollar Tree, Deals, and Dollar Tree Canada brands, and when this transaction is complete, we will operate under the Family Dollar brand as well."
Shares of Dollar General (Ticker: DG) are down 3.6 percent in pre-market trading.
SEE ALSO: One more time, mulling a Dollar General-Family Dollar deal from last month