Limited Brands announces completion of Express sale
10 Jul '07
3 min read
Limited Brands Inc announced the completion of the sale of Express and entry into a definitive agreement to transfer a majority interest in its Limited Stores business.
"We have moved from a portfolio of brands and businesses to an enterprise powered by two world-leading brands: Victoria's Secret and Bath and Body Works...the best brands in intimate apparel and personal care. These strategic actions will better position Express and Limited Stores for future growth and profitability and enable the 'new' Limited Brands to derive the benefit of our increased focus," said Leslie H. Wexner, chairman and chief executive officer of Limited Brands, Inc.
Express: Limited Brands announced that it has finalized the sale of a 75 percent ownership interest in its Express brand to affiliates of Golden Gate Capital for pre-tax cash proceeds of $602 million, subject to closing adjustments. Limited Brands and Golden Gate Capital agreed to increase Golden Gate Capital's stake to 75 percent from the previously announced 67 percent.
The change will result in an additional $54 million in pre-tax cash proceeds to Limited Brands which is included in the above-stated $602 million. After pre- closing adjustments, Limited Brands expects to receive after-tax cash proceeds of approximately $425 million and to record an after-tax gain of approximately $188 million, both subject to post-closing adjustments.
Express will continue to operate under the same brand nameand is expected to remain headquartered in its current location in Columbus, Ohio. Express' 2006 net sales were $1.7 billion, and it currently operates 624 store locations.
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