Marks and Spencer Signs Agreement To Purchase Brooks Brothers
LONDON (AP) _ Marks and Spencer PLC, Britain’s most profitable retailer, said Tuesday it signed an agreement to purchase the swank U.S. clothing chain Brooks Brothers from Canada’s Campeau Corp. for $770 million.
But it reiterated that the Brooks Brothers purchase is conditional on the success of Campeau’s $6.18 billion cash bid for Federated Department Stores Inc., which is being contested by R.H. Macy & Co.
Marks and Spencer agreed to pay $720 million for Brooks Brothers itself and for preferential rights to lease space in the enlarged 800-strong Campeau stores empire.
The purchase price also included $50 million in exchange for Campeau’s pledge not to set up a speciality menswear chain in the next five years that would compete with Brooks Brothers in Japan or the United States.