Cherry Tree Consumer Newsletter: March 2025 Transactions and Valuations

Cherry Tree & Associates | Notable M&A Transactions | March 2025

Walgreens Enters into Definitive Agreement to be Acquired by Sycamore Partners for $23.7B

Walgreens Boots Alliance (NASDAQ: WBA) has signed a definitive agreement to be taken private by Sycamore Partners in a transaction valuing the company at up to $23.7 billion. Shareholders will receive $11.45 per share in cash and one non-transferable right to earn up to an additional $3.00 per share from the future monetization of WBA’s stakes in VillageMD, Summit Health, and CityMD. The deal represents a premium of 29% to WBA’s unaffected share price and up to 63% including the additional potential proceeds. WBA will continue operating its Walgreens and Boots brands and remain headquartered in the Chicago area. Backed by Sycamore’s retail expertise, the company plans to accelerate its transformation into a more efficient, pharmacy-led health and retail platform. The agreement includes a 35-day go-shop period, and Executive Chairman Stefano Pessina will reinvest his proceeds and maintain a significant stake in the business.

investor.walgreensbootsalliance.com

PepsiCo to Acquire Poppi for $1.95B

PepsiCo (NASDAQ: PEP) has entered into an agreement to acquire Poppi, a fast-growing prebiotic soda brand, for $1.95 billion, including $300 million in expected tax benefits for a net purchase price of $1.65 billion. The deal also includes an earnout tied to future performance milestones. Founded by Allison and Stephen Ellsworth and backed by CAVU Consumer Partners, Poppi has quickly gained traction with health-conscious consumers thanks to its low-sugar, functional soda made with prebiotics and apple cider vinegar. The acquisition strengthens PepsiCo’s better-for-you portfolio and reflects its continued push into health and wellness beverages.

pepsico.com

Forward Consumer Partners Acquires Bar Keepers Friend

Forward Consumer Partners acquired a majority stake in SerVaas Laboratories, the maker of Bar Keepers Friend, a legacy household cleaning brand known for its science-backed, high-performance products. The SerVaas family, including longtime President Paul SerVaas, will retain a meaningful minority stake, with Paul continuing on the board. BKF has seen consistent double-digit revenue growth over the past decade and is widely used by both professionals and consumers. Azania Andrews, former CEO of 1440 Foods and Vice President of Michelob Ultra, has been appointed CEO. This is the sixth investment from Forward’s $425 million debut fund.

businesswire.com

CraftMark Bakery Acquired by One Equity Partners

One Equity Partners has agreed to acquire CraftMark Bakery, a large-scale producer of frozen bakery products for quick service restaurants and retail bakeries. The investment gives OEP a foothold in the growing and fragmented North American frozen bakery sector, where it plans to support CraftMark’s growth through customer expansion, strategic M&A, and operational investment. The deal is expected to close in Q2 2025.

oneequity.com

Lashbrook Acquires Doubloon

Lashbrook, known for its custom men’s wedding bands, has acquired Doubloon Golf to expand into the premium gifting market. Doubloon offers high-end golf-related keepsakes that have gained popularity among collectors, corporate executives, and golf enthusiasts. With golf’s rapid growth—highlighted by increasing participation and demand for golf gifts—Lashbrook sees Doubloon as a complementary product line that drives incremental sales without overlapping with its core jewelry offerings.

instoremag.com

TickPick Acquires Fanimal

TickPick, a ticket marketplace known for its all-in pricing and transparent fee structure, has acquired Fanimal, a platform that simplifies ticket buying for small and mid-sized venues and promoters, marking its official entry into primary ticketing. This move follows TickPick’s $250 million growth investment from Brighton Park Capital in 2024 and expands its offerings to include primary ticketing services alongside its secondary market. As part of the deal, Fanimal will integrate into TickPick’s platform, and Fanimal CEO Jonny Halprin will assist with the transition. Furthermore, this acquisition strengthens TickPick’s partnership with LaLiga North America, expanding their ticketing services to include watch parties, concerts, and other events related to the soccer league.

ticketnews.com

James Hardie Acquires AZEK for $8.75B

James Hardie (NYSE: JHX) has agreed to acquire The AZEK Company (NYSE: AZEK) for $8.75 billion in a cash-and-stock deal, representing a 26% premium to AZEK’s 30-day VWAP. The transaction combines James Hardie’s fiber cement siding and trim business with AZEK’s decking and outdoor living portfolio, significantly expanding the combined company’s addressable market in North America to $23 billion. The combination is expected to generate at least $350 million in annual adjusted EBITDA through cost and commercial synergies and be accretive to James Hardie’s cash EPS in the first full fiscal year post-close. Together, the companies generated $5.9 billion in sales and over $1.8 billion in adjusted EBITDA in 2024.

investors.azekco.com

Birdies Acquired by KNS International, a Centre Partners Portfolio Company

KNS International, a leader in e-commerce and DTC footwear and backed by Centre Partners, has acquired Birdies, a popular women’s footwear brand known for blending comfort and fashion with a strong direct-to-consumer presence. Birdies will become a flagship brand within the KNS portfolio, joining names like Journee, Taft, and Vance. The transaction will support Birdies’ continued growth and broader market reach, while its Co-Founder, Bianca Gates, will join KNS as Brand President.

prnewswire.com

Baby Merlin Acquired by HALO, a Transom Capital Portfolio Company

HALO Dream, a Transom Capital portfolio company specializing in infant sleepwear and accessories, has acquired Baby Merlin, the maker of the popular Magic Sleepsuit. Known for helping babies transition from swaddling, the product has earned a loyal following among parents. This marks HALO’s second acquisition in the past year, following its 2024 purchase of BreathableBaby. The addition strengthens HALO’s position as a leader in safe sleep solutions and highlights Transom’s continued commitment to expanding the company’s premium product portfolio.

globenewswire.com

Grove Collaborative Acquires 8Greens

Grove Collaborative (NYSE: GROV) has acquired 8Greens, a wellness brand known for its greens-based supplements in gummy and effervescent tablet formats, to strengthen its position in the health and wellness category. This move aligns with Grove’s strategic focus on human health and expands its portfolio of owned brands. The acquisition will allow Grove to distribute 8Greens products through its own marketplace starting in April 2025, complementing existing channels. Founder Dawn Russell will join Grove as a consultant to support product development and wellness education initiatives.

investors.grove.com

Heartland America Acquired by S5 Equity

S5 Equity has acquired Heartland America, a discount catalog and online retailer based in Minnesota, as a strategic addition to its portfolio company Hammacher Schlemmer, which it acquired in August 2024. Heartland, known for deals across electronics, housewares, and apparel, aligns closely with Hammacher in customer focus and service values. The transaction supports S5 Equity’s strategy of scaling heritage consumer brands through shared distribution, marketing, and sales capabilities, reinforcing its commitment to the catalog and DTC model amid broader retail headwinds.

prnewswire.com

Proozy Acquires Majority Stake of Zulily for $5M

Proozy, the Minnesota-based online retailer known for daily deals on brand-name apparel and accessories, has acquired a majority stake in discount e-commerce platform Zulily for $5 million in an attempt to revive the flash-sale model. Zulily, which once served over 130 million customers, changed hands multiple times in recent years and ceased operations in 2023. Beyond Inc., which acquired Zulily’s assets for $4.5 million in late 2024, will retain a 25% stake while focusing on its core Bed, Bath & Beyond and BuyBuy Baby brands. Proozy, with 3 million customers and a strong base in athletic apparel, plans to merge operations and relaunch both brands under a new company. The real value for Proozy lies in Zulily’s customer database and strong brand recognition among affluent, deal-driven female shoppers.

tcbmag.com

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