Ending weeks of speculation and closed-door negotiations, Federated Department Stores, Inc. and May Department Stores Co. announced Monday that they have entered into a merger agreement.

Under the agreement, Federated will purchase May shares for about $11 billion, and assume about $6 billion of May debt, according to a joint statement from the two companies.

The boards of directors of both companies approved the deal Sunday. The companies hope the expanded Federated can use economies of scale and scope to compete more effectively with its retail competitors. The companies expect to close the deal in the third quarter, after regulatory review and approval from shareholders.

Following the merger, Federated will become a $30 billion retailer with stores in 49 states, Guam, Puerto Rico and the District of Columbia. The expanded company will operate more than 950 department stores and about 700 bridal and formalwear stores, with operations in 64 of the nation's top 65 markets


Finlay may buy Carlyle & Co.

Finlay Enterprises is in advanced negotiations regarding a possible acquisition of Carlyle & Co. Jewelers, the company announced Wednesday.

Carlyle is a privately owned chain, with 32 stores throughout the southeastern United States. Its annual sales total about $80 million.

“As we have stated in the past, reviewing acquisition candidates is part of our strategy to grow and diversify our business,” Finlay Chairman and Chief Executive Officer Arthur E. Reiner, said in a company statement. “We believe a business such as Carlyle would complement our existing operations.”

Finlay Enterprises, through its wholly owned subsidiary, Finlay Fine Jewelry Corp., runs about 960 stores and fine jewelry departments in department stores throughout the United States. If the deal goes through, the acquisition would represent the latest development in a continuing trend toward mergers among players throughout the jewelry industry, from department stores to specialty retailers to manufacturers.

Other recent mergers include the planned union of Federated Department Stores Co. and May Department Stores, announced this week, and the joining of Kmart Holding Corp. and Sears, Roebuck & Co. and Fifth Avenue Luxury Group and the U.S. division of Florentine watchmaker Anonimo Firenze.


Source : National Jeweler Daily News
www.nationaljeweler.com

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