graphic
graphic  
graphic
News > Deals
graphic
Fingerhut may have a buyer
Group led by Peter Lytle in preliminary deal to acquire direct marketer.
February 22, 2002: 12:38 p.m. ET

graphic NEW YORK (CNN/Money) - Business Development Group Acquisitions Inc., a business group led by turnaround specialist Peter Lytle, has signed a binding letter of intent to acquire direct marketer Fingerhut from Federated Department Stores Inc.

The agreement is a preliminary step which could lead to the sale of Fingerhut, Federated said.

graphic
graphic graphic
graphic
Wayzata, Minn.-based BDGA must still obtain sufficient financing as well as perform additional due diligence on the transaction, which was announced Thursday. BDGA will notify Federated in early March if it will proceed with the purchase, which could lead to a definitive agreement at that time, the companies said.

Financial terms were not announced but press reports said the unit could command $500 million to $1 billion. Federated noted that it is not in talks with other parties regarding the sale of Fingerhut. Cincinnati-based Federated (FD: down $1.15 to $37.49, Research, Estimates) is the parent of  the Macy's and Bloomingdale's department stores.

graphic  
In January, Federated said it planned to close Fingerhut and lay off its 6,000 employees if it didn't find a buyer. Federated bought Fingerhut, a leading direct marketer, in 1999 for $1.7 billion. The department store retailer expects to generate about $1.1 billion to $1.3 billion in after-tax cash proceeds over the next four years once it disposes of Fingerhut.

"The sale of Fingerhut as a going concern remains our top priority and, if a sale is feasible, Federated is prepared to move as quickly as possible to get this done," Federated Vice Chairman Ronald Tysoe said. graphic





graphic

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2012 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2012 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2012. All rights reserved. Most stock quote data provided by BATS.
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2012 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2012 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2012. All rights reserved. Most stock quote data provided by BATS.
graphic