X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

YORK, PA-Bon-Ton Stores Inc. has entered into a definitive agreement with Charlotte, NC-based Belk Inc. to acquire four Parisian department stores and the rights for construction of a fifth. The purchase price is $22 million in cash, including the assumption of liabilities, which are not quantified. The transaction is expected to close on Oct. 30.

The four existing locations are: a 148,000-sf unit at Laurel Park Place, a regional mall in Livonia, MI; a 120,500-sf unit at Meadowbrook Village, a lifestyle center in Rochester Hills, MI; the 130,199-sf unit at Fairfield Commons, a regional mall in Beavercreek, OH, and the 144,000-sf unit at Circle Centre, a downtown mall in Indianapolis. Construction of the fifth location, a 120,000-sf store at Partridge Creek, a lifestyle center in Clinton Twp. MI, will begin this year and is scheduled to open in October 2007.

Belk acquired 38 Parisian units earlier this year from Saks Inc. for $285 million. In addition to the sales to Bon-Ton, Tom Belk, chairman and CEO, says his company will sell seven more Parisian units in Ohio, Georgia, Indiana, South Carolina and Tennessee, but no buyer has yet been identified.

Meanwhile, locally based Bon-Ton will continue operating the four Parisian units it acquired, which generated net sales of $90 million in 2005. During the transition period, Belk will provide support services, including information technology, credit services and other back-office functions.

“We are extremely pleased with the opportunities that this acquisition affords our company,” said Bud Bergren, Bon-Ton president and CEO, in a statement. The Parisian units “fit geographically into our existing markets, strengthen our position in the Midwest and add to our customer base. We look forward to welcoming the Parisian associates to the Bon-Ton team and integrating their strong base . . . which are integral to the success of our company.”

On completion of the transaction, Bon-Ton will operate a total of 282 stores in 23 states with estimated annual net sales of $3.4 billion. It operates units under the Bon-Ton, Bergner’s, Boston Store, Carson Pirie Scott, Elder Beerman, Herberger’s and Younkers brands.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt. NET LEASE Awards 2020Event

These awards honor the industry's most influential and knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.