Sears, Roebuck and Co. has agreed to buy Land’s End Inc. for about $1.9 billion.
The deal combines Lands’ End, the largest specialty catalog and Internet retailer, with Sears, a retailer that has lost customers to discount chains like Wal-Mart Stores Inc. and Kohl’s Corp.
Hoffman Estates, IL-based Sears is in the process of overhauling its clothing unit and Lands’ End has been contemplating opening its own stores. Sears plans to introduce some Lands’ End products in to many of its 870 department stores by this fall and is expected to roll out the complete line by 2003.
Lands’ End, Dodgeville, WI, will continue to offer its conservatively styled casual clothes, shoes and home goods through its catalogs and Web site.
Lands End CEO David Dyer will remain in his position and will report to Alan Lacy, Sears CEO, after the deal closes. Dyer also will assume responsibility for Sears’ existing customer-direct business, which includes sears.com, catalogs and specialty merchandise.
Under terms of the deal, which has been approved by both retailers’ boards, Sears will pay $62 a share for Lands’ End, representing a 21% premium over Friday’s closing price. Sears will assume an unspecified amount of debt.
”We were drawn to Lands’ End’s brand strength across all apparel categories, including men’s, women’s and children’s,” Lacy said in a statement.
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