SOS FOR FAO
Calabasas, CA-based educational products retailer Right Start, Inc. agreed to acquire $55 million in assets from struggling toy retailer FAO Schwarz, New York City. As part of the deal, which includes 22 of FAO's 44 stores (including the Manhattan flagship), FAO parent Vendex International NV, Amsterdam, gains a significant interest in Right Start. FAO's other locations will close.
NO LONGER SUITABLE
London-based Marks & Spencer sold its 160-outlet Brooks Brothers men's clothing chain to Retail Brand Alliance, Enfield, CT, for $225 million in cash. The deal was a steal, considering Marks & Spencer paid $750 million for the flagging chain three years ago. Retail Brand Alliance also owns women's chain Casual Corner.
A NATURAL FIT
Raleigh, NC-based R.J. Reynolds Tobacco Holdings beat out Canadian rival Rothmans, Inc. to acquire Santa Fe Natural Tobacco Co., Santa Fe, NM, makers of American Spirit cigarettes. RJR will pay $337.5 million in cash.
RAISING A GENIUS
Walt Disney Co., Burbank, CA, acquired Lone Tree, CO-based Baby Einstein Co., creators of upscale media products, toys, and books designed to expose babies and toddlers to language, art, and science. This fall, Baby Einstein teamed with Disney Publishing and Hasbro, Inc. on a new product line.
FULFILLING PROPOSITIONS
Coupon redemption house International Data, El Paso, TX, merged with Pennsauken, NJ-based fulfillment company Marketing Masters, Inc. The latter's consumer promotions, assembly, mailing, packaging, warehousing, and distribution services will become part of International Data's Laborgistics division. Marketing Masters brings such clients as Emerson Electric Co. and Mott's, Inc. to the International Data fold, which already includes Exxon/Mobil, Winn-Dixie, and Wells Fargo.
