Citigroup Buys Sears Card Business for $31.8B
Citigroup said yesterday that it completed the previously announced acquisition of the Sears Credit Card and Financial Products business.The purchase price of $31.8 billion, at closing, included a 10 percent premium on Sears private-label and bankcard credit card receivables of $28.6 billion -- or $2.9 billion -- and $300 million for other assets, business facilities and employees.
Included in the purchase price was the assumption of $10.4 billion in securitized debt and other liabilities.
Citigroup and Sears also entered a multi-year marketing and servicing agreement involving a range of each company's businesses, products and services.
Citigroup said there would be no immediate changes to the Sears card programs or operations.
With the addition of 64 million Sears accounts and $29 billion in card receivables, the acquisition boosts Citigroup's portfolio to 161 million accounts and $146 billion in card receivables in North America, and 176 million accounts and $160 billion in card receivables globally.
