Sears, Roebuck & Co. raised $1 billion yesterday, 33% more than planned, from a sale of 30-year bonds to help fund the purchase of Lands’ End.
Sears announced earlier this month that it would acquire Lands’ End for $62 per share or about $1.9 billion.
The Hoffman Estates, IL-based Sears said is expects to sell about $1.5 billion of bonds to buy Lands’ End and generate the remainder of the purchase price from free cash flow.
The deal combines Lands’ End in Dodgeville, WI, the largest specialty catalog and Internet retailer, with Sears, a retailer in the process of overhauling its clothing unit. Sears plans to introduce some Lands’ End products into many of its 870 department stores by this fall and is expected to roll out the complete line by 2003.
Lands’ End will continue to offer its conservatively styled casual clothes, shoes and home goods through its catalogs and Web site.
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