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AcquisitionsCompany NewsIllinoisIndianaMidwestTop Stories

Old National Bank, First Midwest Agree to $6.5B Merger Deal

by John Nelson

EVANSVILLE, IND. AND CHICAGO — Old National Bancorp (Nasdaq: ONB) and First Midwest Bancorp Inc. (Nasdaq: FMBI) have entered into a definitive merger agreement valued at $6.5 billion. The two Midwest institutions operate retail bank branches under the Old National Bank and First Midwest Bank brands, respectively. The all-stock transaction is expected to close late this year or early 2022 and is subject to customary closing conditions, including regulatory and shareholder approvals. The boards of directors of both companies have unanimously approved the merger agreement. The “merger of equals” arrangement will allow the banks to compete against other banks and lenders in the Midwest for new business, as well as give both organizations the ability to scale and retain their existing personnel and client base. The combined company will be the sixth-largest bank with headquarters in the Midwest. The transaction calls for First Midwest stockholders to receive 1.1336 shares of Old National common stock for each share of First Midwest common stock they own. Following completion of the transaction, former First Midwest stockholders are expected to collectively represent approximately 44 percent of the combined company. This values First Midwest currently at $2.5 billion, according to Market Watch. The combined assets …

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CaliforniaCompany NewsRetailWestern

Gap’s First-Quarter Sales Increase 28 Percent, Net Sales Hit $4B

by Amy Works

SAN FRANCISCO — Gap Inc. (NYSE: GPS), the parent company of Old Navy, Gap, Banana Republic and Athleta, released its first-quarter 2021 fiscal report showing net sales reached $4 billion, up 8 percent over first-quarter 2019. Additionally, comparable sales were up 28 percent year-over-year and rose 13 percent since pre-pandemic 2019. The company showed strong increases in net sales at Old Navy and Athleta — 27 percent and 56 percent increase over 2019, respectively. There were declines in net sales at Gap Global (16 percent) and Banana Republic Global (29 percent). Old Navy’s comparable sale were up 35 percent year-over-year and 25 percent versus 2019. Additionally, Athleta reported 113 percent digital growth compared to the first quarter of 2019, with comparable sales up 27 percent year-over-year and 46 percent versus 2019. Overall, first-quarter online sales for Gap Inc. grew 82 percent versus first-quarter 2019 and represented 40 percent of the total business. Store sales declined 16 percent compared to first-quarter 2019, primarily due to store closures and COVID lockdowns outside of the United States. Currently, Gap has 3,571 store locations in more than 40 countries, with the company operating 2,997 of them.

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AcquisitionsCompany NewsWestern

Ares Management to Acquire Black Creek Group, Creating Company with $29B in Assets Under Management

by Amy Works

LOS ANGELES AND DENVER — A subsidiary of Los Angeles-based Ares Management has agreed to acquire 100 percent of Denver-based Black Creek Group’s U.S. real estate investment advisory and distribution business. Black Creek Group had approximately $11.6 billion assets under management as of March 31 in core/core-plus real estate strategies across two non-traded REITs and various institutional fund vehicles and spanning industrial, multifamily, office and retail property types. Additionally, the firm’s senior management team has an average of 25 years of experience in sourcing, acquiring, operating and developing properties in the United States. The transaction is expected to expand the Ares Real Estate Capital’s existing capabilities and product offerings. The buyers says the deal will also broaden its real estate platform with vehicles that complement the firm’s existing real estate debt and U.S. and European value-add and opportunistic funds. The combined real estate group will have approximately $29 billion assets under management and the transaction will boost Ares’ non-traded REIT capital by $5.1 billion. Upon closing, key members of the Black Creek leadership team will remain in place and become part of the Ares Real Estate Group, which Bill Benjamin leads. “[This transaction] further scales our real estate business, expands …

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Company NewsMarylandSoutheast

Under Armour’s First-Quarter Sales Exceed Analysts’ Estimates, Surpass Previous Year

by Julia Sanders

BALTIMORE — Athletic apparel giant Under Armour Inc. (NYSE: UA) has reported $1.3 billion in sales in its fiscal first quarter of 2021, a 35 percent jump from last year’s first-quarter sales. The Baltimore-based company’s fiscal first quarter ended on March 31. Under Armour’s earnings in the quarter totaled 16 cents per share, which far surpasses the 3 cents expected by analysts, according to CNBC. The company reported an increase of $1.26 billion in revenue from the $930.2 million recorded in the first quarter of 2020. Additionally, the brand’s net income increased to 17 cents per share, or $77.8 million. Last year, the company experienced a loss of $589.7 million. Under Armour expects its sales to increase by 70 percent in the second quarter compared with second-quarter 2020, the period in which the U.S. economy took the full brunt of the COVID-19 pandemic. As of March 31, Under Armour operated 426 stores. Under Armour’s stock price closed on Wednesday, May 19 at $18.26 per share, up from $7.70 a year ago, a 57.8 percent increase.

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Company NewsNew YorkNortheastRetail

Macy’s Reports 56 Percent Growth in First-Quarter Net Sales, Raises Full-Year Expectations

by Taylor Williams

NEW YORK CITY — Macy’s Inc. (NYSE: M) reported approximately $4.7 billion in net sales for its 2021 fiscal first quarter that ended on May 1, an increase of about 56 percent from $3 billion in net sales during that period last year. Macy’s CEO Jeff Gennette cited the windfalls of federal stimulus funds and the expanding vaccine rollout as key to the company exceeding expectations. In addition, Gennette said that more Macy’s customers are engaging with its online platform, enabling the New York City-based retailer to post a 34 percent increase in digital sales from the first quarter of 2020. Macy’s has revised its full-year guidance and is now projecting to generate between approximately $21.7 billion and $22.2 billion in net sales this year; previously it had estimated that range to be roughly $19.7 billion to $20.7 billion. Macy’s stock price opened at $19.44 per share on Tuesday, May 18, up from $5.55 per share a year ago.

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Company NewsIndustrialWashingtonWestern

Amazon to Hire 75,000 Fulfillment, Transportation Employees at Average Pay Above $17 Per Hour

by Amy Works

SEATTLE — Amazon (NASDAQ: AMZN) is planning to hire 75,000 employees in its fulfillment and logistics network across the U.S. and Canada as the company continues to expand its footprint. Hiring is currently underway with the most openings in Arizona, California, Colorado, Georgia, Illinois, Kentucky, Maryland, Michigan, Minnesota, New Jersey, Pennsylvania, Tennessee, Washington and Wisconsin. Amazon also announced pay increases across its fulfillment and transportation networks with these roles offering an average pay of more than $17 per hour, plus sign-on bonuses in many locations of up to $1,000. Additionally, the company offers full-time employees benefits, including health, vision and dental insurance, 401(k) with 50 percent company match, paid parental leave and access to various company-funded learning opportunities that includes Amazon’s Career Choice program, which prepays 95 percent of tuition for courses in high-demand fields. Amazon is also offering $100 to any new hires who show proof of COVID-19 vaccinations. In late March, the company began rolling out on-site vaccination events at fulfillment centers in Missouri, Nevada and Kansas. The program has now expanded to more than 250 locations across the U.S. and Canada and offers access to the COVID-19 vaccine for more than half a million front-line employees, contractors …

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Company NewsNew YorkNortheastRetail

Elliott Investment Management Enters into Agreement to Acquire Paper Source Inc.

by Taylor Williams

CHICAGO, NEW YORK CITY AND LONDON — Elliott Investment Management LP, the parent company of Barnes & Noble, has entered into a definitive agreement to acquire the assets and business operations of Paper Source. The Seattle Times reports that the purchase price was approximately $91.5 million. The acquisition will allow the Chicago-based stationery and party supplies retailer to emerge from Chapter 11 bankruptcy and to continue to operate 130 stores across the country, as well as its wholesale division, Waste Not Paper by Paper Source. James Daunt, CEO of New York City-based Barnes & Noble, will oversee daily operations of both companies. While Paper Source and Barnes & Noble will continue to function as separate businesses, executives involved in the deal noted that the complementary nature of the two retail operations creates potential for future partnerships. Elliott Investment Management originally acquired Barnes & Noble in September 2019.    

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CaliforniaCompany NewsRestaurantRetailWestern

Chipotle Increases Wages to $15 Per Hour Average, Plans to Hire 20,000 Employees

by Amy Works

NEWPORT BEACH, CALIF. — Chipotle Mexican Grill (NYSE: CMG) is increasing its restaurant wages, resulting in an $15 average hourly wage by the end of June, according to the Newport Beach-based company. Additionally, the Chipotle employees can advance to a “restaurateur” status, the highest general manager position, in approximately three-and-a-half years, with average compensation of $100,000. Wage increases for new and existing hourly and salaried restaurant employees will be rolled out over the next few weeks and will result in hourly crew member starting wages ranging from $11 to $18 per hour. The company has also launched a $200 employee referral bonus for crew members and a $750 referral bonus for apprentices and general managers. With approximately 200 restaurants slated to open this year coupled with continued growth and demand, Chipotle plans to hire 20,000 new team members across the United States. The company will host a virtual career fair on Discord on May 13.

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CaliforniaCompany NewsOfficeWestern

World-Renowned Commercial Real Estate Architect Art Gensler Passes Away at 85

by Amy Works

SAN FRANCISCO — M. Art Gensler Jr., founder of San Francisco-based global design firm Gensler, passed away on Monday. At the age of 85, Gensler died at his Mill Creek, Calif., home following an 18-month battle with lung disease, according to the San Francisco Chronicle. In 1965, along with his wife Drucilla Cortell Gensler and James Follett, Gensler co-founded the design firm M. Arthur Gensler Jr. & Associates in San Francisco. Since its founding, the firm has grown from a three-person operation to more than 5,000 employees across 50 locations globally. “Art didn’t want to be a ‘starchitect,’” says Andy Cohen, Gensler co-CEO. “In fact, what he built was a constellation of stars by hiring smart people and getting out of their way. It’s why Gensler is a pioneer in our industry, and Art’s legacy will remain embedded in our firm’s unique culture.”

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Company NewsMarylandSoutheast

Marriott Posts Net Loss in First Quarter, But CEO Forecasts Room Demand to Strengthen

by Julia Sanders

BETHESDA, MD. — Marriott International Inc. (Nasdaq: MAR) posted a net loss of $11 million in first-quarter 2021, a notable shift from last year when the firm generated $31 million in earnings, though that quarter did not experience the full shock of the COVID-19 pandemic. Marriott’s earnings were adjusted to 10 cents a share, which was higher than what Wall Street estimated at 3 cents per share, according to The Wall Street Journal. Marriott’s revenue decreased from $4.7 billion in first-quarter 2020 to $2.3 billion in first-quarter 2021 as worldwide RevPAR (revenue per available room) dipped 46.3 percent year-over-year. Additionally, the company saw an adjusted net income of $34 million, which is roughly 79 percent lower than the first quarter of last year ($160 million). Marriott’s CEO Tony Capuano predicts the company’s earnings to bounce back due to a higher demand for travel in the United States and Canada following the widespread implementation of the three COVID-19 vaccines. “As vaccines roll out around the world and government restrictions ease, I am optimistic that demand will continue to strengthen,” says Capuano. According to Capuano, who took over a few months ago from the late Arne Sorenson, the company saw an uptick …

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