In accordance with its long-standing strategy to enhance shareholder value by sharpening its focus and simplifying its structure, Limited Brands Inc announced a definitive agreement to sell a majority interest in its Express brand and an intent to explore strategic options for Limited Stores.
"Our strategic agenda focuses on growth in the intimate apparel, and personal care and beauty segments of our business. The new ownership structure for Express will provide it with the resources, leadership focus and capital to maximize its potential." stated Leslie H. Wexner, Chairman and Chief Executive Officer. "Consistent with our past practices, we intend to return excess cash to shareholders. We will also engage in a complete review of our SG&A expenses with a view to a resizing and realignment that is appropriate for the size and complexity of our new enterprise structure."
Express: Limited Brands announced that it has signed a definitive agreement with affiliates of Golden Gate Capital to sell a 67% ownership interest in its Express brand for cash proceeds of $548 million. The Company expects that after-tax cash proceeds will approximate $425 million, subject to any post closing adjustment. The transaction is expected to close no later than July 6th, and is subject to customary conditions.
Mr. Wexner added, "We have been very encouraged by the progress and improved performance that Express has demonstrated over the last year and a half. We continue to believe in Express and its potential. In fact, we structured this transaction specifically in order to continue to participate in the growth of Express through our 33% ownership interest."
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
