Sears to Buy Lands' End for $1.86B

Share this content:
Sears, Roebuck and Co. today announced its deal to buy Lands' End Inc. for about $1.86 billion.


The transaction has been approved by both boards and is expected to be finalized in June. A report stated that Lands' End, with $1.6 billion in revenue last year, will continue to offer its product line through its catalogs and online, and will become a wholly owned subsidiary of Sears remaining in Dodgeville, WI.


Sears will offer $62 per Lands' End share, which closed at $51.02 Friday. In early trading today, Lands' End stock skyrocketed 21 percent to $61.72 just after 10 a.m. Eastern time. Sears will assume an unspecified amount of debt.


Reuters reported that this ends "years of speculation" regarding talks of a merger between the companies as Lands' End considered opening its own stores while Sears is overhauling its clothing unit, which has underperformed compared with its appliance and tool business.


Sears shares fell 43 cents just after 10 a.m. today after closing at $51.81 Friday.


"I think this is one of the smartest moves that could have been made," Kurt Barnard, president of Barnard's Retail Consulting Group, told Reuters. "It will give Lands' End enormous distribution, and it will greatly enhance Sears' apparel business. Lands' End is a household name."


Sears, Hoffman Estates, IL, reportedly will place some Lands' End products in many of its 870 stores by autumn and is expected to complete product rollout to stores by fall 2003. Sears will carry an assortment of Lands' End clothing along with footwear, home fashions and accessories.


David Dyer, Lands' End CEO, will continue to lead the Lands' End business and will report to Sears CEO Alan Lacy after the deal closes. Dyer will assume responsibility for Sears' existing customer-direct business, which includes sears.com, catalogs and specialty merchandise.


close

Next Article in Multichannel Marketing

Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here