Home & Textiles Today Staff -- Home Textiles Today, June 18, 2007
Dollar General Buyout Detailed
The Kohlberg Kravis Roberts (KKR) affiliate Buck Acquisition Corp. revealed its financing plan for the agreement to take 8,000-store neighborhood discounter Dollar General private. The merged company will "have indebtedness of approximately $5.4 billion outstanding" mainly tied to senior secured facilities of $3.43 billion and unsecured senior debt of $1.35 billion in cash-pay and pay-in-kind toggle notes. The new company will retain some $180 million cash on its balance sheet, and receive a $2.775 billion equity contribution from KKR and other investors.
Macy's Names Hilton Exec to Board
Macy's Inc. elected Stephen Bollenbach, co-chairman and ceo of Hilton Hotels Corporation, to the board of directors. Macy's chairman, president and ceo Terry Lundgren said Bollenbach "brings a depth of expertise in finance and operations for leading consumer-driven organizations." Bollenbach joined Hilton in 1996 as ceo. Prior to that he was sevp and cfo of The Walt Disney Company and, previously, president and ceo of Host Marriott Corporation.
Target Opens Georgia Import Plant
Target opened a two million square-foot import warehouse in the Savannah River International Trade Park. Georgia Governor Sonny Perdue was to co-host the ribbon-cutting ceremony with Target executives including svp of distribution Mitch Stover and warehouse general manager Rob Bass. The facility will handle overseas cargo and merchandise for Target's Southeast stores, and will be joined by a 1.5 million square-foot distribution center in Midway, Ga. set to open later this year.
Cost Plus Fumbles Quarterly Report
Home furnishings specialty chain Cost Plus World Market re-stated its first quarter earnings, reducing its net loss by $0.04 per share. The 296-store retailer discovered about $900,000 in its favor while re-analyzing its tax accounting. The still-dim result: a net loss of $11.1 million, or $0.50 per diluted share, compared to a net loss of $3.5 million, or $0.16 per diluted share, for the same period last year.
Target Hikes Dividend, Buyback
Target Corp. declared a third-quarter dividend of $0.14 per common share, a 16.7% increase in its regular dividend. The 1,500-store retailer also increased its ongoing $5 billion share repurchase authorization to a total buyback ceiling of $8 billion. Target said the program will primarily be executed "in open market transactions, subject to market conditions," with completion "by year-end 2010 or sooner."
Mednick Talks to HTT about Online Trends for Textiles