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e-News
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Federated doubles store count with May deal in the bag |
09.01.2005
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CINCINNATI--Federated Department Stores Inc. here, parent company of Macy's and Bloomingdales, completed its $11.9 billion acquisition of St. Louis-based May Department Stores Co. on Aug. 30. The deal creates a department store chain with approximately1,000 locations with $30 billion in annual sales.
May Co. is the parent company of Chicago-based Marshall Field's and Lord & Taylor, which are known for their extensive houseware departments, as well as gourmet food offerings.
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According to a prepared statement, Federated will operate May's stores under their existing names through the end of the year, but plans to convert most locations to its Macy's nameplate by fall 2006. A decision has not been made about whether or not the Marshall Field's nameplate will remain. The company plans to divest an additional eight duplicate stores in California, Massachusetts and New York in 2006. Didn't find anything that said how many stores were closing.
The New York Attorney General's office said Federated will sell 26 department stores in five states as part of an antitrust settlement linked to its purchase of May, according to Reuters.
The former rival department stores have been in negotiations since Federated agreed to buy May Co. in February. With the deal, Federated picks up 501 department stores in 15 states under such banners as Famous-Barr, Filene's, Foley's, Hecht's, Kaufmann's, L.S. Ayres, Meier & Frank and Robinsons-May.
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