American Apparel Gets Offer with Strings; Another US Company Heads to the Emerald Isle; The Yogurt Wars. Enough Said.

Down but not out…

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Image courtesy of jesadaphorn/FreeDigitalPhotos.net

American Apparel might be bankrupt but that are still a few investors who would like to help revive the company. And it’s the latest offer that’s got people talking. Hagan Capital Group, along with Silver Creek Capital Partners, want to scoop up American Apparel for a sweet $300 million. And one more thing…they want Dov Charney reinstated. It’s the same Dov Charney who is also the founder and former CEO of American Apparel, and who was booted following some sexual misconduct allegations, not to mention other allegations involving the misuse of corporate funds. Just saying. Incidentally, Dov Charney hired Cardinal Advisors to help him line up investors who would see to it that he would be reinstated at the company he founded. How clever indeed. Several backers strongly feel that the company’s performance went down after Charney was shown the door.  Chad Hagan of Hagan Capital Group feels Charney was wronged adding, “We are willing to be friendly and genteel, but the fact is we want this company and we want Dov back in…We are deadly serious.” Not sure what he means about the deadly serious part but that is still nothing short of a ringing endorsement for Mr. Charney.

Invert this…

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Image courtesy of jesadaphorn/FreeDigitalPhotos.net

After six long months, pharmaceutical company Baxalta International Inc. finally said yes. Of course that yes comes with a $32 billion check but hey, it’s still a yes. The lucky suitor is Ireland-based pharmaceutical company, Shire Plc., which is offering Baxalta shareholders approximately $45.57 in cash and stock – an offer that represents an approximately 38% premium. The two companies expect to crank out $20 billion in revenues in the next year.  It’ll be helped by that fact that Baxalta’s corporate tax rate will drop from a very onerous 23%-24% in the United States, to a more corporate friendly tax rate of 16%-17% in Ireland. Gotta love an inversion. Shire’s main product is Vyvanse, used to treat symptoms related to ADHD.  But it’s Baxalta’s drug treatments that has corporate pharmaceutical tongues wagging. The company’s treatments focus on rare blood conditions, cancer and immune system disorders. While a relatively small population requires those treatments, those treatments are insanely lucrative, bringing in mega bucks for drug companies that offer them. In fact, 65% of Baxalta’s revenues come from treatments for rare blood disorders.

Not so good bacteria…

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Image courtesy of Master isolated images/FreeDigitalPhotos.net

Believe it or not it’s a yogurt smack down as Greek yogurt churner Chobani took aim at its competition last week. But now that competition is fighting back. Just three years ago, the Greek yogurt industry was growing at a rate of 60%. How ironic that the opposite is true for Greece. But I digress. In any case, the industry is now only growing at about 5%, with Chobani being the largest Greek yogurt seller in the world. The competition to differentiate is fierce – that is, if such a term can be applied to yogurt. Chobani launched an ad campaign on January 6 targeting Dannon’s use of sucralose – an artificial sweetener that has been FDA approved for food for the last 15 years. Sucralose apparently has chlorine in it and should therefore cause a potential yogurt enthusiast to purchase a container just to go ahead and chuck it – just like in Chobani’s ad. Which is weird because wouldn’t you first read the ingredients before shelling out money for the product? Just saying. Chobani also goes after Yoplait Greek 100 over its use of potassium sorbate, an ingredient that Chobani’s commercial actor points out is also used to kill bugs. Yum. Dannon wasted no time in sending out a cease and desist to Chobani charging that its claims are “false, misleading, disparaging and deceptive.” Chobani filed a complaint against that cease and desist letter arguing that its campaign for it “is not false, misleading…” Well, you get the picture.

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One response to “American Apparel Gets Offer with Strings; Another US Company Heads to the Emerald Isle; The Yogurt Wars. Enough Said.

  1. No I don’t read the ingredients first! That is expecting way too much!

    I’ve been trying to be better – I went to buy some vitamins the other day and the first ingredient was high fructose corn syrup… and they were made with a pork gelatin (vegetarian here) … so yeah, I put them back – but I was impress that I checked, it’s the first time I ever have on vitamins!

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