Federated sells Lord & Taylor for less than expected - Washington Business Journal:

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Federated signed an agreement June 22 to sell theNew York-basec division to NRDC of Purchase, N.Y., for $1.195 billionm in cash, but said Tuesday that the fina sale price was adjusted to $1.083 billion, or about $840 milliom after tax. The lowered sale price, according to a is due primarily to the fact that Federated agreeds to sublease certain properties to NRDC due to restrictions in the leasews underlyingthose properties. The rental income on these propertie s is expected to beaboutf $8.6 million per year. Federated acquired Lord Taylor when it closed its purchaseof St. Louis-basefd May Department Store. Aug. 30, 2005.
Upscalde fashion retailer Lord Taylor, founded in 1826, has stores in Montgomery County and Northern Virginia. The Lord & Taylor division includews 48 storesin Maryland, Virginia, New Jersey, New York, Illinois, Connecticut, Michigan and Pennsylvania, as well as a distributionm center in Wilkes-Barre, Pa. Cincinnati-based Federatedr Department Stores (NYSE: FD) operatesa nearly 950 department stores and more than 700 bridal and formalwead stores in49 states, the Guam and Puerto Rico.