Federated Buys Liberty House Stores
Retailer Federated Department Stores Inc., parent of Macy’s and Bloomingdale’s chains, agreed last week to buy Liberty House, giving Federated an entry into Hawaii.
Terms of the deal, which is expected to close in July, were not disclosed. Excluding one-time costs of about $50 to $60 million, the acquisition is expected to have a neutral impact on the company’s earnings-per-share over the next 18 months and add to Federated’s earnings subsequently.
The acquisition will add 11 Liberty House department stores and seven resort and specialty stores in Hawaii and one on Guam to Federated’s Macy’s West division. The deal will bring incremental new sales of about $275 million annually, the company said. —Nola Sarkisian-Miller
