Federated Department Stores Inc (FDS) announced that it has signed agreements to sell its Bridal Group division, based in Conshohocken, in two separate transactions totaling $850 million in cash (after-tax net proceeds of approximately $750 million), subject to certain adjustments.
Federated's Board of Directors has approved the sales. Both transactions are expected to close in the first quarter of 2007, pending regulatory approvals. Federated will continue to operate Bridal Group locations until the change in ownership. Federated accounts for the Bridal Group as a discontinued operation.
"These sale agreements represent the successful conclusion of a process that yielded an excellent price for our shareholders," said Terry J. Lundgren, Federated's Chairman, president and Chief Executive Officer.
"While the Bridal Group did not fit with Federated's strategy for focusing on the nationwide Macy's and Bloomingdale's brands, we do believe these businesses have a promising future under the ownership of Leonard Green and Men's Wearhouse. We look forward to a continuing relationship between Macy's and David's Bridal, with Macy's being the exclusive department store wedding gift registry partner with David's."
David's Bridal and Priscilla of Boston will continue under the leadership of the Bridal Group management team following the acquisition by an affiliate of Leonard Green. Men's Wearhouse will be integrating the companies with the management of After Hours.
Federated was advised in the Bridal Group divestiture process by Credit Suisse, Banc of America Securities LLC, and the law firm of Jones Day.
Federated Department Stores Inc
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