Sears to acquire Lands' End in $1.9 billion deal

HOFFMAN ESTATES, ILLINOIS - Sears, Roebuck and Co. is buying catalog retailer Lands&#39; End Inc. for about $1.9 billion, the companies announced Monday. <br> <br> Lands&#39; End is the largest specialty apparel catalog company and the biggest Internet seller of apparel in the United States. <br> <br> Under a deal expected to be completed in June, Lands&#39; End will become a wholly owned subsidiary of Sears and will continue to be headquartered in Dodgeville, Wis. <br> <br> &#34;Lands&#39; End is a very successful and well-managed company. We were drawn to Lands&#39; End&#39;s brand strength across all apparel categories,&#34; Alan J. Lacy, Sears chairman and chief executive, said in a statement. <br> <br> Hoffman Estates-based Sears will introduce a selection of Lands&#39; End products into many of its 870 full-line stores by fall 2002 and is expected to complete product rollout to stores by fall 2003. <br> <br> Lands&#39; End - with $1.6 billion in revenue in 2001 - will continue to offer its complete product line direct to customers through its catalogs and online at www.landsend.com. <br> <br> Sears will make a tender offer for all shares of Lands&#39; End stock for $62 a share in cash. <br> <br> That is a 21.5 percent premium over Lands&#39; End&#39;s closing price of $51.02 a share on Friday in trading on the New York Stock Exchange. <br> <br> Gary C. Comer, Lands&#39; End&#39;s founder and chairman, and other shareholders have agreed to tender their shares, representing about 55 percent of the outstanding common stock. The tender offer requires that at least two-thirds of the fully diluted shares be tendered. <br> <br> Lacy said the transaction - which has approval of both companies&#39; boards of directors - does not alter Sears outlook of a 17 percent earnings increase for the year.

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