Press Release

Printer Friendly Version View printer-friendly version
Federated Agrees to Sell Lord & Taylor to NRDC Equity Partners; Transaction Expected to Close in Third Quarter of 2006

CINCINNATI--(BUSINESS WIRE)--June 22, 2006--Federated Department Stores, Inc. (NYSE:FD)(NYSE Arca:FD) today announced that it has signed an agreement to sell its New York-based Lord & Taylor division to NRDC Equity Partners, LLC for $1.195 billion in cash. NRDC Equity Partners, based in Purchase, NY, is a partnership between principals of Apollo Real Estate Advisors, L.P. and principals of National Realty & Development Corp.

Federated's Board of Directors has approved the sale. A transaction is expected to close in the third quarter of 2006, pending regulatory approvals.

The sale includes 48 Lord & Taylor stores in New Jersey, New York, Illinois, Massachusetts, Connecticut, Maryland, Virginia, Michigan, Pennsylvania, and the District of Columbia, as well as a distribution center in Wilkes-Barre, PA. Federated will continue to operate all Lord & Taylor stores and facilities until NRDC assumes ownership. Federated accounts for Lord & Taylor as a discontinued operation.

"This agreement concludes a successful process to divest Lord & Taylor," said Terry J. Lundgren, Federated's chairman, president and chief executive officer. "While Lord & Taylor does not fit with Federated's strategic focus on building the nationwide Macy's and Bloomingdale's brands, it is a well-known niche specialty retailer with a great name, many outstanding locations and an experienced management team.

"We are pleased that NRDC Equity Partners sees the opportunity in operating Lord & Taylor as an ongoing specialty department store and values the quality of its management team," Lundgren said.

Federated was advised in the Lord & Taylor divestiture process by Goldman Sachs, JPMorgan and the law firm of Jones Day.

NRDC was advised by Tri-Artisan Partners LLC, Bear Stearns & Co., Inc. and the law firm of Stroock & Stroock & Lavan LLP.

Federated, with corporate offices in Cincinnati and New York, is one of the nation's premier retailers, with fiscal 2006 sales expected to be more than $27 billion. Federated operates more than 850 department stores in 45 states, the District of Columbia, Guam, and Puerto Rico under the names of Macy's, Bloomingdale's, Famous-Barr, Filene's, Foley's, Hecht's, Kaufmann's, L.S. Ayres, Marshall Field's, Meier & Frank, Robinsons-May, Strawbridge's, The Jones Store. The company also operates and Bloomingdale's By Mail.

All statements in this press release that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of Federated's management and are subject to significant risks and uncertainties. Actual results could differ materially from those expressed in or implied by the forward-looking statements contained in this release because of a variety of factors, including conditions to, or changes in the timing of, proposed transactions, or the risk the company will not be able to divest the assets that it intends to divest or that the amounts realized in connection with the divestitures are less than anticipated, and other factors identified in documents filed by the company with the Securities and Exchange Commission.

(NOTE: Additional information on Federated, including past news releases, is available at

CONTACT: Federated Department Stores, Inc.
Media - Jim Sluzewski, 513-579-7764
Investor - Susan Robinson, 513-579-7780

SOURCE: Federated Department Stores, Inc.


This section contains press releases issued by Macy’s, Inc. on the date specified. We have not undertaken any responsibility to update the information in these releases and in some instances the information in these releases may be dated.

Click here to continue to the press releases.