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May buys Mormon chain
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October 15, 1999: 3:18 p.m. ET
Parent of Lord & Taylor agrees to buy ZCMI in foray into Salt Lake City area
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NEW YORK (CNNfn) - Call it a match made in heaven: the Mormon church has struck a merger deal with the parent of Lord & Taylor.
May Department Stores, the nation's second-largest retailer with 11 chains such as Talbot's, Lord & Taylor and Filene's, agreed Friday to buy Zions Co-operative Mercantile Institution, which is partly owned by the Mormon church, for $22.50 a share, or about $52 million.
May said it hopes to vault into the greater Salt Lake City area with its purchase of ZCMI, which operates 14 full-service department stores in Utah and Idaho. ZCMI is partly controlled by a trust run by the Church of Jesus Christ of Latter-day Saints.
"Although the Church of Jesus Christ of Latter-day Saints will no longer be associated with ZCMI, the May Co. enjoys an excellent reputation in its business, associate relations and community activities," the ZCMI Reserve Trust said.
Shareholders owning at least 53.5 percent of ZCMI, including the ZCMI Reserve Trust, have agreed to tender their shares. May will add ZCMI to its Portland, Ore.-based Meier & Frank chain.
ZCMI Reserve Trust had $238 million in annual sales, while St. Louis-based May (MAY) racked up $13.1 billion in sales at its 11 department store chains across 33 states.
Shares of May, which said it doesn't expect any adverse effect on its results from the deal, fell 3/4 to 34-5/16 Friday. Shares of ZCMI trade on the over-the-counter bulletin board under the symbol ZNCO.
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May Department Stores
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