Saks Incorporated announced that the review period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, for the previously announced sale by the Company of its Proffitt's and McRae's business to Belk, Inc., has expired.
The sale of the Proffitt's and McRae's business to Belk is currently scheduled to close July 5, 2005, subject to the satisfaction of certain other closing conditions.
On April 28, 2005, the Company and Belk entered into a definitive agreement, whereby Belk agreed to acquire substantially all of the assets directly involved in the Proffitt's and McRae's operations in a cash transaction for $622 million, plus the assumption of approximately $1 million in capitalized lease obligations and the assumption of certain other ordinary course liabilities associated with the acquired assets. The assets include the real and personal property and inventory associated with 22 Proffitt's stores and 25 McRae's stores. Belk will also assume operating leases on leased store locations. The 47 Proffitt's/McRae's stores being sold are located throughout 11 Southeastern states and generated revenues of approximately $700 million in 2004.
