The following locations are included in the sale agreement, with a transaction expected to be completed in the second quarter of 2006:
-- Kaufmann's Monroeville Mall, Monroeville, PA (262,000 square feet; opened in 1987)
-- Kaufmann's South Hills Village, Pittsburgh, PA (258,000 square feet; opened in 1987)
-- Macy's Marley Station, Glen Burnie, MD (267,000 square feet; opened in 1987)
-- Macy's Owings Mills, Owings Mills, MD (267,000 square feet; opened in 1986)
-- Macy's White Marsh, Perry Hall, MD (198,000 square feet; opened in 1981)
-- Strawbridge's Deptford Mall, Deptford, NJ (173,000 square feet; opened in 1995)
-- Strawbridge's Lehigh Valley Mall, Whitehall, PA (173,000 square feet; opened in 1995)
-- Strawbridge's Montgomery Mall, North Wales, PA (184,000 square feet; opened in 1995)
-- Strawbridge's Oxford Valley Mall, Langhorne, PA (178,000 square feet; opened in 1995)
-- Strawbridge's Willow Grove Park, Willow Grove, PA (235,000 square feet; opened in 1988)
Clearance sales at these locations began on Jan. 29, 2006. Macy's will continue to serve customers in these malls, including in locations where May Company nameplates will be converted to Macy's.
Terms of the sale were not disclosed. Federated said proceeds from this transaction will be included in the $400 million to $500 million of after-tax proceeds expected from the sale of duplicate stores nationwide, as previously announced.
All statements in this press release that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of Federated's management and are subject to significant risks and uncertainties. Actual results could differ materially from those expressed in or implied by the forward-looking statements contained in this release because of a variety of factors, including conditions to, or changes in the timing of, proposed transactions, the risk the company will not be able to divest the assets that its intends to divest or that the amounts realized in connection with the divestitures are less than anticipated, the risk that the company is not able to realize cost synergies expected from the merger with May Company or is not able to integrate the May Company as anticipated, prevailing interest rates, competitive pressures from specialty stores, general merchandise stores, manufacturers' outlets, off-price and discount stores, new and established forms of home shopping (including the Internet, mail-order catalogs and television) and general consumer spending levels, including the impact of the availability and level of consumer debt, the effect of weather and other factors identified in documents filed by the company with the Securities and Exchange Commission.
Boscov's, Inc., founded in 1921 and based in Reading, PA, is the country's largest family owned department store company. It operates 40 Boscov's Department Stores in Delaware, Maryland, New Jersey, New York, Pennsylvania and Virginia.
Federated, with corporate offices in Cincinnati and New York, is one of the nation's premier retailers, with fiscal 2006 sales expected to be more than $27 billion. Federated operates more than 850 department stores and more than 720 bridal and formalwear stores in 49 states, the District of Columbia, Guam and Puerto Rico under the names of Macy's, Bloomingdale's, Famous-Barr, Filene's, Foley's, Hecht's, Kaufmann's, Lord & Taylor, L.S. Ayres, Marshall Field's, Meier & Frank, Robinsons-May, Strawbridge's, The Jones Store, David's Bridal, After Hours Formalwear and Priscilla of Boston. The company also operates macys.com and Bloomingdale's By Mail. www.fds.com
(NOTE: Additional information on Federated, including past news releases, is available at www.fds.com/pressroom )