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Blair & Alliance Data Systems unity to include acquisition of Blair credit portfolio

26 May '05
5 min read

during the year ended december 31, 2004, blair's credit portfolio generated income before income taxes of approximately $5.6 million. after closing, blair anticipates that the annual impact of the transaction to its income before income taxes will be a net reduction in pre-tax income of $2 to $4 million, as financial benefits from the alliance partnership will partially offset the income generated from the divested credit portfolio.

blair currently intends to distribute the net proceeds from the transaction (after transaction costs and required debt repayment, including a reserve for applicable taxes related to the gain on sale), anticipated to be approximately 80 percent of gross proceeds, to blair's shareholders in the form of a stock repurchase, dividend, or combination of both. the transaction will be accretive to blair's 2005 earnings per share.

stephens inc. served as financial advisor to blair corporation.

alliance data systems is a leading provider of transaction services, credit services and marketing services, managing over 105 million consumer relationships for some of north america's most recognizable companies. alliance creates and manages customized solutions that change consumer behavior and that enable its clients to build stronger, mutually beneficial relationships with their customers. headquartered in dallas, alliance data systems employs approximately 7,500 associates at 35 locations in the united states and canadanings per share.

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