FDS & May Co mergers to bring distinctive fashion & affordable luxury
30 Aug '05
5 min read
Largest departmental store operator Federated Department Stores Inc (FDS)announced it has concluded its merger with The May Department Stores Company. The merger became effective prior to the opening of trading this morning on the New York Stock Exchange.
Under terms of the merger agreement, May Company shareholders as of the time of merger on August 30, 2005, will receive $17.75 in cash and 0.3115 shares of Federated common stock for each share of May Company common stock.
"Today is a landmark day in the history of our company. Two great organizations have come together, and we see tremendous opportunity ahead," said Terry J. Lundgren, Federated's Chairman, President and Chief Executive Officer. "They see opportunity to bring distinctive fashion and affordable luxury to our customers, opportunity for our people to grow and develop, opportunity to increase shareholder value, and opportunity to be a stronger partner for our communities.
"They will be meeting with the May Company organization and continuing to learn more about its business so we can make the best possible long-term decisions," Lundgren said. "In the short term, we are firmly focused on serving customers and delivering results through the holiday selling season."
Federated expects to operate all May Company stores under their existing nameplates at least through the end of 2005. Conversion of most May Company locations to the Macy's nameplate is expected in fall 2006, consistent with Federated's announcement of July 28. Also as previously announced, divestiture of duplicate May Company and Macy's locations will begin in 2006.
marketing@alchempro.com
