Target Corporation (NYSE:TGT) is serious about courting younger shoppers, and nearly pulled the trigger recently on a major acquisition that could have made some inroads to that end.
According to a new report from Recode, the retail giant even went so far as to make a formal offer to buy mattress-making startup Casper:
Multiple sources told Recode that Target offered $1 billion to buy the fast-growing New York City-based company, but the two sides couldn’t work out a deal.
Casper had been out raising a large round of funding when the talks started, sources said. The startup generated around $200 million in sales in 2016 — its second full year in business — and was valued at around $550 million after its last private investment in 2015.
While it couldn’t work out terms for an outright purchase, Target instead will probably be the lead investor on a new financing round, securing a sizable stake in Casper instead. TGT is currently working on executing a plan to introduce over a dozen exclusive brands to its stores and online platform within the next couple of years, mimicking similar moves by Amazon that have paid off handsomely.
Target Corporation shares were trading at $56.04 per share on Friday afternoon, up $0.21 (+0.38%). Year-to-date, TGT has declined -20.85%, versus a 7.30% rise in the benchmark S&P 500 index during the same period.