Federated Department Stores, Inc. (NYSE:FD)(PCX:FD) announced that it has reached a definitive agreement with FAC Acquisitions, LLC, in which Thomas J. Petters and Theodore Deikel are principals, for the purchase of certain Fingerhut assets. The agreement is subject to customary closing conditions and satisfactory completion of limited due diligence, and terms of the agreement are not being disclosed. A final closing could take place within the next few weeks.
Assets included in the agreement include the distribution center and other additional facilities in St. Cloud, MN; the subsidiary's Minnetonka, MN, corporate headquarters; the data center in Plymouth, MN; the distribution center facility in Piney Flats, TN; and the Fingerhut name, website and existing inventory, as well as other miscellaneous property and equipment.
"We are pleased that we have been able to negotiate this definitive agreement with Tom Petters and Ted Deikel for the sale of these Fingerhut assets, and that the buyers have indicated a desire to rehire a number of Fingerhut employees as part of their future business plans," said Ronald W. Tysoe, Federated's vice chairman. "We anticipate being able to finalize this sale in the near future."
Deikel is a former chief executive of Fingerhut and Petters owns a wholesale business based in Eden Prairie, MN.
Federated, with corporate offices in Cincinnati and New York, is one of the nation's leading department store retailers, with annual sales from continuing operations of more than $15.6 billion. Federated currently operates more than 460 stores in 34 states, Guam and Puerto Rico, under the names of Macy's, Bloomingdale's, The Bon Marche, Burdines, Goldsmith's, Lazarus and Rich's, as well as macys.com and Bloomingdale's By Mail.
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