Saks Incorporated completes $622mn deal of Belk Inc
06 Jul '05
4 min read
Leading retailer Saks Incorporated announced it has completed the sale of its Proffitt's/McRae's business to Belk, Inc. ("Belk"). Earlier today, the Company announced the successful results of its tender offers for three issues of its senior notes and the consent solicitations for all of the Company's senior notes and its convertible senior notes.
Sale of Proffitt's/McRae's
Effective midnight on July 2, 2005, Saks completed the sale of substantially all of the assets directly involved in its Proffitt's/McRae's operations to Belk in a cash transaction for $622 million, plus the assumption of approximately $1 million in capitalized lease obligations and certain other ordinary course liabilities associated with the acquired assets.
The assets include the real and personal property and inventory associated with 22 Proffitt's stores and 25 McRae's stores. Belk also has assumed operating leases on leased store locations. The 47 Proffitt's/McRae's stores are located throughout 11 Southeastern states and generated revenues of approximately $700 million in 2004.
After-tax proceeds from the transaction will total approximately $600 million.
R. Brad Martin, Chairman and Chief Executive Officer of Saks Incorporated, noted, "We are pleased to complete the sale of Proffitt's/McRae's to Belk. As previously announced, we continue to explore strategic alternatives for our Carson Pirie Scott & Co. ("CPS") northern department store group and Club Libby Lu specialty store business."
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