Limited Brands announces completion of Express sale
10 Jul '07
3 min read
Limited Stores: The company also announced that it has signed a definitive agreement to transfer a 75 percent ownership interest in its Limited Stores business to affiliates of Sun Capital Partners. In exchange, Sun Capital Partners will contribute $50 million of equity capital into the business and will arrange for a $75 million credit facility. The transaction is expected to close within the next 30 days and is subject to customary conditions. Limited Brands will receive no cash proceeds and expects to record an after-tax loss of approximately $42 million on the transaction, subject to post-closing adjustments.
Limited Stores will continue to operate under the same brand name, and it will remain headquartered in its current location in Columbus, Ohio. Limited Brands will provide transitional services, including sourcing and production through its Mast business. Limited Stores' business includes 251 stores and 2006 net sales were $493 million.
Financial Advisors: Banc of America Securities LLC acted as financial advisor to Limited Brands in connection with the transactions involving Express and Limited Stores.
Limited Brands, through Victoria's Secret, Bath & Body Works, C.O. Bigelow, Limited Stores, La Senza, White Barn Candle Co., Henri Bendel and Diva London, presently operates 3,140 specialty stores.
Golden Gate Capital is a private equity firm with over $3.4 billion of capital under management dedicated to investing in change-intensive opportunities. The firm's charter is to partner with world-class management teams to make equity investments in situations where there is a demonstrable opportunity to significantly enhance a company's value.
Sun Capital Partners Inc is a leading private investment firm focused on leveraged buyouts, equity, debt, and other investments in market-leading companies that can benefit from its in-house operating professionals and experience.
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