Hot retailers and brands in such categories as crafting, casual footwear and pet supplies were snapped up in some of the largest retail acquisitions of 2021. The Michaels Companies, which benefited from a surge in sewing and other crafts during the pandemic was acquired by private equity firm Apollo Global Management, clogs maker Crocs bought similar brand Hey Dude and pet toy and food e-retailer Bark took the “blank check company” route to going public by merging with Northern Star Acquisition Corp. Northern Star is a so-called Special Purpose Acquisition Company (SPAC) that raises money from investors in an IPO and then uses the funds to buy an existing company.
Not-so-hot results can also lead to acquisitions, as in the case of Adidas conceding that its 2006 acquisition of fellow sneaker brand Reebok did not work out. That led to the sale of Reebox to Authentic Brands Group LLC, a private equity-funded brand-management company that previously has acquired such troubled brands as Aeropostale, Brooks Brothers and Nine West.