Sears to Buy Lands' End for $1.86B

Share this article:
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.


Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in Multichannel Marketing

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in Multichannel Marketing

7 Ways to Take Your Marketing Strategy to the Big Leagues

7 Ways to Take Your Marketing Strategy to ...

A game-winning omnichannel strategy must be seamless, synchronous, and symbiotic.

Pet World's Multichannel Marketing Is a Whole Other Animal

Pet World's Multichannel Marketing Is a Whole Other ...

The family owned pet store redesigns its website to bring the in-store experience online.

Complexity's What Marketers Got, Simplicity's What They Want

Complexity's What Marketers Got, Simplicity's What They Want

Customer insights managers want campaign management tools to remain easy to use, even as they up their games with multi-layered campaigns.