Under Armour has joined a growing list of major consumer brands that are making big changes to their wholesale strategies. The athletic brand, which saw some progress in its turnaround during the third quarter, said it will begin to exit 2,000 to 3,000 stores in North America, its largest market. By the end of 2022, it expects to be in about 10,000 doors, executives said in a conference call. As it overhauls wholesale, Under Armour is also upping its focus on direct-to-consumer (D-to-C) channels, where it plans to offer fewer promotions and discounts to fuel healthier margins. Total Retail's Take: Considering the upheaval we've seen in the brick-and-mortar arena in 2020, and its uncertain future moving into 2021, it's not surprising that leading brands such as Under Armour are taking a long, hard look at their wholesale operations.
S&P Global (NYSE: SPGI) today announced that it has entered into an agreement to sell its Engineering Solutions business to investment funds managed by KKR, a leading global investment firm and a longstanding customer of S&P Global, for $975 million in cash, subject to customary purchase price adjustments.
S&P Global currently anticipates the divestiture to result in after-tax proceeds of approximately $750 million, which proceeds are expected to be used to fund share repurchases. The agreement follows S&P Global’s announced intent in November 2022 to divest the business.
“Today’s announcement marks the next exciting step towards executing our strategy of powering global markets,” said Douglas L. Peterson, President and Chief Executive Officer of S&P Global. “The divestiture of Engineering Solutions to KKR allows us to further focus on driving growth in our core businesses. Engineering Solutions is a strong business, and we believe it will continue to thrive under KKR’s direction.”
Engineering Solutions provides data, technology, and insights that allow over 6,000 global customers and 650,000 users to optimize workflows and end-user experiences. Its products enable engineers, builders, and architects in many industries to access the data and insights they need to deliver complex projects and new products.
“We see significant opportunities for Engineering Solutions to accelerate growth, expand its footprint and continue to innovate as an independent company,” said Webster Chua, Partner at KKR. “Engineering Solutions is trusted by engineers and standards organizations around the world and we look forward to deepening these relationships by making long-term investments in enhanced product coverage, improved workflow solutions and expanded distribution capabilities.”
KKR is making the investment through its North America Fund XIII.