Federated Department Stores Inc announced it has completed the previously announced sale of its New York-based Lord & Taylor division to NRDC Equity Partners of Purchase, New York.
Federated said the final sale price was adjusted to $1.083 billion (approximately $840 million after tax). This compares with a sale price of $1.195 billion included in an initial agreement announced June 22, 2006.
The difference is due primarily to the fact that Federated has agreed to sublease to NRDC certain properties due to restrictions in the leases underlying those properties. The rental income on these properties is expected to be approximately $8.6 million per year.
The Lord & Taylor division includes 48 stores in New Jersey, New York, Illinois, Massachusetts, Connecticut, Maryland, Virginia, Michigan, Pennsylvania, and the District of Columbia, as well as a distribution center in Wilkes-Barre.
Federated Department Stores Inc
marketing@alchempro.com
