Saks Inc. reached a definitive agreement to sell its Proffitt's/McRae's department stores to Belk Inc. for $622 million, Saks said last week.
The announcement was the latest in a series of retail-related acquisitions that began last fall when Kmart said it would buy Sears, followed by Federated Department Stores picking up May Department Stores and continuing last month when a group of investors acquired Brookstone.
Proffitt's operates 22 stores and McRae's 25 stores in 11 Southeastern states. They generated about $700 million combined in revenue last year, according to Birmingham, AL-based Saks.
Belk, Charlotte, NC, is a privately owned department store company with 228 stores in 14 Southeastern states.
The deal is expected to be completed in the second quarter.
Also last week, Saks said it would explore strategic alternatives for its northern department store division, which includes Bergner's, Boston Store, Carson Pirie Scott, Herberger's and Younkers, as well as Club Libby Lu, a chain of 43 stores and 23 in-store shops for preteen girls. It will continue to operate the company's Parisian and Saks Fifth Avenue stores.
Chantal Todé covers catalog and retail news and BTB marketing for DM News and DM News.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters