Belk inks deal with Saks Incorporated to buy Parisian department stores
02 Aug '06
3 min read
Department store chain Belk Inc has entered into a stock purchase agreement with Saks Incorporated to acquire 38 Parisian department stores with locations in nine states in the Southeast and Midwest.
Two new Parisian stores are scheduled to open in fall 2006. Upon completion of the transaction, which has been approved by the boards of directors of both companies Belk Inc will operate a total of 315 stores in 19 states.
"This is another excellent opportunity for Belk to expand its store base and further strengthen our market leadership in Alabama and other key markets within our existing footprint," said Tim Belk, chairman and CEO of Charlotte, N.C.-based Belk Inc.
"Just as with the earlier purchase of the Proffitt's and McRae's stores from Saks, the Parisian stores are located in great markets and are similar to Belk in many ways. Parisian is known and respected for offerings of top fashion brands and excellent customer and community service," Tim said.
Belk will pay $285 million for the ownership of the Parisian stores and will assume operating leases of leased store locations. The stores generated a combined total sales volume last year of approx. $723 million. The transaction is scheduled to close on October 2, 2006, and is subject to regulatory review and other closing conditions.
The integration of the stores is expected to take approx. 18 months, and the company plans to re-brand the acquired stores as Belk in the third quarter of 2007.
marketing@alchempro.com
