Target to sell Mervyn’s for $1.65B: “Target Corp. said Thursday it is selling its Mervyn’s department stores and that chain’s credit-card operations in a two-pronged deal worth $1.65 billion.”
Well, it’s not at all unexpected. Target has been looking to shed its non-core divisions so that it can focus on its main business — owning and operating its popular Target discount stores, which rank No. 2 in the U.S. behind Wal-Mart. In June, it agreed to sell its upscale 62-store Marshall Field’s department store chain to May Department Stores for over $3.2 billion.
Some specifics of the Mervyn’s deal. All 257 Mervyn’s stores in some 13 states will be sold and the Mervyn’s chain will operate as an independent company, owned by group of private equity companies that are buying it. They are: Sun Capital Partners, Cerberus Capital Management, and Lubert-Adler/Klaff and Partners. Value of the deal is $1.65 billion. As well, it’s selling its private label Mervyn’s credit card business for $475 million to GE Consumer Finance, a division of General Electric Co.
Oh, and I chose the article from CBS MarketWatch as it was the most detailed, yet not too long. Plus, I felt I’d been featuring AP and Reuters articles too frequently. So, the 11-paragraph article by Jennifer Waters, Chicago bureau chief for CBS MarketWatch, is well worth the read.