NEW YORK - Federated Department Stores Inc. put a $1.2 billion price tag on its 49-unit Lord & Taylor division, Women’s Wear Daily reported. Even though the asking price is within Wall Street’s valuation range, some deem the price too steep. The business had sales of $1.56 billion in 2005.
Federated put Lord & Taylor up for sale in January after it announced that the chain didn’t fit into its strategy to build up its Macy’s and Bloomingdale’s nameplates. The group acquired Lord & Taylor last year through its $17 billion purchase of May’s Department Stores. Federated hopes to complete its divesture of Lord & Taylor by the end of 2006.