Federated Department Stores Inc. (Cincinnati) has signed agreements to sell its bridal group division, based in Conshohocken, Pa,, in two separate transactions totaling about $850 million.
An affiliate of Leonard Green & Partners L.P. (Los Angeles) has agreed to purchase the 269-store David's Bridal and 10-store Priscilla of Boston businesses for approximately $750 million. And The Men's Wearhouse Inc. (Houston) has agreed to purchase the 511-store After Hours Formalwear business, which includes Mr. Tux stores in New England, for approximately $100 million.
According to the terms of the deal, David's Bridal and Priscilla of Boston will continue under the leadership of the current bridal group management team following the acquisition. Men's Wearhouse will be integrating its two new companies with the management of After Hours.
Federated acquired the bridal group with its purchase of The May Department Stores Co. (St. Louis) in 2005.
“These sale agreements represent the successful conclusion of a process that yielded an excellent price for our shareholders,” said Federated chairman, president and ceo Terry Lundgren. “While the bridal group did not fit with Federated's strategy for focusing on the nationwide Macy's and Bloomingdale's brands, we do believe these businesses have a promising future under the ownership of Leonard Green and Men's Wearhouse. We look forward to a continuing relationship between Macy's and David's Bridal, with Macy's being the exclusive department store wedding gift registry partner with David's.”