The May Department Stores Company to Acquire Marshall Field's
June 09 2004 - 6:52PM
PR Newswire (US)
The May Department Stores Company to Acquire Marshall Field's
Transaction Strengthens May's Position in Midwestern Metropolitan
Areas ST. LOUIS, June 9 /PRNewswire-FirstCall/ -- The May
Department Stores Company (NYSE:MAY) announced today that it has
entered into a definitive agreement to acquire the Marshall Field's
department store group and nine Mervyn's store locations in the
Twin Cities area from Target Corporation (NYSE:TGT) for a total
consideration of $3.240 billion in cash, subject to adjustments.
The transaction is expected to be completed in May's fiscal 2004
second or third quarter. Marshall Field's, which reported revenues
of $2.58 billion and generated $107 million in segment earnings in
fiscal 2003, has 62 stores primarily in the Chicago, Minneapolis
and Detroit metropolitan areas. Locations include its world-famous
flagship store on State Street in the Chicago Loop and important
flagship stores in Detroit, Minneapolis, and suburban Chicago. With
the addition of Marshall Field's, May will operate 500 department
stores in 39 states. Under the terms of the agreement, May will
acquire all the assets that comprise Marshall Field's, including
stores, inventory, customer receivables, and distribution centers
in Chicago, Detroit and Minneapolis. May is also acquiring the real
estate associated with the nine Mervyn's stores. Gene Kahn, May's
chairman and chief executive officer, said, "We are delighted to
welcome this venerable and nationally recognized, premier
department store company as a division of May and to welcome the
Marshall Field's associates to our company. This unique opportunity
to add to our department store portfolio will provide a great value
to our shareowners. It will allow us to combine the best of
Marshall Field's and May to further expand and enhance the products
and services we can provide to our customers. Among the benefits we
see is that this combination will produce excellent economies of
scale, improved buying power, and an expanded distribution
network." After completion of the acquisition and its integration
into May, the company expects to realize pre-tax synergies of $85
million in fiscal year 2005, $140 million in fiscal year 2006, and
$180 million per year thereafter. The acquisition is expected to be
accretive to earnings per share in fiscal year 2005 and beyond. May
will retain the Marshall Field's nameplate and operate it as one of
the stand-alone department store divisions under the May umbrella.
May also intends to maintain the product exclusives -- such as
Frango mints -- that are long-standing traditions at Marshall
Field's. Linda L. Ahlers will remain as president of Marshall
Field's, and headquarters for the division will remain in
Minneapolis. May will offer employment to all Marshall Field's
associates. The acquisition is subject to customary closing
conditions, including Hart-Scott-Rodino approval under the United
States antitrust laws. The transaction does not require shareowner
approvals for either May or Target. The May Department Stores
Company currently operates 438 department stores under the names of
Lord & Taylor, Famous-Barr, Filene's, Foley's, Hecht's,
Kaufmann's, L.S. Ayres, Meier & Frank, Robinsons-May,
Strawbridge's, and The Jones Store, as well as 217 David's Bridal
stores, 456 After Hours Formalwear stores, and 10 Priscilla of
Boston stores in its Bridal Group. May operates in 46 states, the
District of Columbia, and Puerto Rico. For more information contact
Sharon Bateman at (314) 342-6494. This announcement may contain, in
addition to historical information, certain forward-looking
statements that involve risks and uncertainties. Actual results
could differ materially from those currently anticipated as a
result of a number of factors, including risks and uncertainties
discussed in The May Department Stores Company's filings with the
Securities and Exchange Commission. Those factors include, among
other things, the competitive environment in the retailing industry
in general and in the specific market areas in which May and its
divisions operate, including consumer confidence, changes in
discretionary consumer spending, changes in costs of goods and
services and economic conditions in general, unseasonable weather
and those risks generally associated with the integration of
Marshall Field's with May. There can be no assurance that the
acquisition will close, as to the timing of the closing, that the
integration will be successful or without unanticipated costs or
that anticipated synergies or other benefits will be realized. The
May Department Stores Company assumes no obligation to update any
forward-looking statements as a result of new information or future
events or developments. To view a map showing May and Marshall
Field's department store locations across the country, please see
http://www.mayco.com/common/0609files.jsp. Note: A live Webcast of
a conference call with analysts can be accessed through May's Web
site, beginning at 8:30 a.m. EDT, June 10, 2004. Pre-registration
is required. Marshall Field's Stores acquired by The May Department
Stores Company: MARKET LOCATION STORE ILLINOIS Chicago Aurora Fox
Valley Center Bloomingdale Stratford Square Chicago, Illinois State
Street Calumet City River Oaks Center Chicago Water Tower Joliet
Louis Joliet Mall Lake Forest Market Square Northbrook Northbrook
Court Oak Brook Oakbrook Center Mall Oak Brook Oakbrook Center
Furniture Orland Park Orland Square Schaumburg Woodfield Mall
Schaumburg Woodfield Mall Home Skokie Old Orchard 3 Chicago cont.
Vernon Hills Hawthorn Center West Dundee Spring Hill Mall Rockford
Rockford, Illinois Cherryvale Mall INDIANA Fort Wayne Fort Wayne
Glenbrook Square South Bend Mishawaka University Park Mall MICHIGAN
Detroit Ann Arbor Briarwood Dearborn Fairlane Town Center Fort
Gratiot Birchwood Mall Harper Woods Eastland Center Novi Twelve
Oaks Mall Southfield Northland Shopping Center Sterling Heights
Lakeside Mall Taylor Southland Center Troy Oakland Mall Troy The
Somerset Collection Waterford Summit Place Mall Westland Westland
Center Flint Flint Genesee Valley Shopping Center Grand Rapids
Grandville Rivertown Crossings Kentwood Woodland Mall Kalamazoo
Battle Creek Lakeview Square Mall Portage The Crossroads Lansing
Lansing Lansing Mall Okemos Meriden Mall Saginaw Saginaw Fashion
Square Mall Traverse City Traverse City Grand Traverse Mall
MINNESOTA Minneapolis-St. Paul Brooklyn Center Brookdale Shopping
Center Burnsville Burnsville Center Edina Southdale Edina Southdale
Home Maplewood Maplewood Mall Minnetonka Ridgedale Mall Roseville
Rosedale Center Roseville Rosedale Center Home St. Paul Downtown
Rochester Rochester Apache Mall St. Cloud St. Cloud Crossroads
Center NORTH DAKOTA Bismark Bismark Kirkwood Mall Fargo Fargo West
Acres Shopping Center Grand Rapids Grand Forks Columbia Mall 4 OHIO
Toledo Toledo Franklin Park Mall SOUTH DAKOTA Sioux Falls The
Empire Mall WISCONSIN Appleton Appleton Fox River Mall Eau Claire
Eau Claire Oakwood Mall La Crosse La Crosse Valley View Mall
Madison Madison Hilldale Milwaukee Wauwatosa Mayfair Mall MERVYN'S
LOCATION MARKET LOCATION STORE MINNESOTA Minneapolis St. Paul
Brookdale Shopping Center Eden Prairie Center Maplewood Mall Midway
Center Northtown Mall Rosedale Shopping Center Southdale Shopping
Center Tamarack Village DATASOURCE: May Department Stores Company
CONTACT: Sharon Bateman, +1-314-342-6494, for May Department Stores
Company Web site: http://www.mayco.com/common/0609files.jsp
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