Cincinnatti, OH, June 22, 2006—According to reports, Federated Department Stores is close to a deal to sell its Lord & Taylor unit to private equity firm Apollo Real Estate Advisors and shopping center developer NRDC Real Estate Advisors for about $1.2 billion, The Wall Street Journal reported Thursday.
Citing people familiar with the matter, the Journal said the deal needs the approval of Federated's board, and could still fall apart.
Barring any last-minute problems, the deal could be announced this week, the paper said.
Lord & Taylor is expected to continue to be run as a retail concern, and chief executive Jane Elfers is expected to remain at the helm, the Journal said, citing one of its sources.
Federated, which obtained Lord & Taylor when it bought May Department Stores last year, had previously announced plans to divest the unit.
