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Retail giant Target Corporation, based in Minneapolis, MN, U.S., said today it reached a definitive agreement to sell its Marshall Field's business unit to The May Department Stores Company for approximately U.S. $3.2 billion in cash.
Under the agreement, Target will sell substantially all the assets directly involved in its Marshall Field's business unit, including 62 Marshall Field's stores, three distribution centers, and approximately $600 million of Marshall Field's credit card receivables. All current Marshall Field's team members will be offered employment by The May Department Stores Company.
The deal also includes the sale of nine stores in the Minneapolis/St. Paul, MN, Twin Cities market that are currently operated as Mervyn's stores.
The transaction is expected to be completed shortly after regulatory approval is obtained.
Target describes Marshall Field's as a traditional department store emphasizing fashion leadership, quality merchandise, and superior guest service. It is headquartered in Minneapolis, operates 62 stores and employs approximately 25,000 team members in 8 states in the upper Midwestern U.S. In 2003, Marshall Field's produced revenues of $2.6 billion and pretax segment profit of $107 million.
The nine Minnesota stores are the only Mervyn's locations affected. Mervyn's is a promotional, middle-market department store, based in the San Francisco Bay area with 266 stores in 14 states, primarily in the west and south. In 2003, Mervyn's generated $3.6 billion in revenue and $160 million in pretax segment profit.
The nine Minnesota stores are the only Mervyn's locations affected. Mervyn's is a promotional, middle-market department store, based in the San Francisco Bay area with 266 stores in 14 states, primarily in the west and south. In 2003, Mervyn's generated $3.6 billion in revenue and $160 million in pretax segment profit.
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