Saks Incorporated completes $622mn deal of Belk Inc
06 Jul '05
4 min read
CPS consists of 143 stores operating under the nameplates of Carson Pirie Scott, Bergner's, Boston Store, Herberger's, and Younkers. The stores are located throughout 12 Midwestern and Great Plains states and generated revenues of approximately $2.2 billion in 2004. Club Libby Lu, catering to pre-teen girls, operates 47 stores and 23 in-store shops located within SDSG stores. Club Libby Lu revenues totaled approximately $30 million in 2004.
The Company also operates Parisian, which consists of 38 stores in nine states and generated 2004 revenues of approximately $700 million, as well as Saks Fifth Avenue Enterprises ("SFAE"), which consists of 57 Saks Fifth Avenue stores, 52 Saks Off 5th stores, and saks.com and generated 2004 revenues of approximately $2.7 billion.
Goldman, Sachs & Co. and Citigroup Global Markets Inc advised the Company with the Belk transaction.
Use of Proceeds
The Company intends to use a majority of the proceeds from the sale of the Proffitt's/McRae's business to fund the retirement of senior notes tendered in the tender offers and consent solicitations initiated by the Company on June 20, 2005 and open to the holders of approximately $658 million in senior notes.
As announced earlier today, as of July 1, 2005 the Company had received a total of $533 million in tendered senior notes representing a majority of each series included in the tender offers. The offers to purchase additional senior notes at par under the tender offers have been extended to July 18, 2005. Tenders of senior notes delivered as of July 1, 2005 are now irrevocable.
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