FD Federated Dept Store

PURCHASE, N.Y., June 22 /PRNewswire/ -- NRDC Equity Partners has entered into an agreement to acquire the 48-store Lord & Taylor retail chain from Federated Department Stores (NYSE:FD) for $1.2 billion in cash. The transaction is anticipated to close in the third quarter of 2006. NRDC Equity Partners, LLC is a partnership between the principals of Apollo Real Estate Advisors, L.P. and the principals of National Realty & Development Corp. The principals of NRDC have completed transactions in excess of $50 billion. Richard Baker, president of NRDC Equity Partners said, "The Lord & Taylor acquisition furthers NRDC's strategy of acquiring great companies that have a strong brand and a valuable real estate platform." In February of this year, NRDC also acquired Linens 'n Things in partnership with Apollo Management, L.P. Lord & Taylor is a fashion retailer with 41 stores along the Northeast corridor and seven stores in Illinois and Michigan. Lord & Taylor has built a reputation for attentive customer service and high quality merchandise with apparel and accessories products for women, men and children. Founded in 1826, Lord & Taylor was acquired by the May Department Stores Company in 1986. On August 30, 2005, Federated Department Stores acquired Lord & Taylor as part of its merger with May Department Stores Company. "Lord & Taylor has been an iconic national brand for 180 years. We believe there is significant opportunity to continue the revitalization of the brand begun in 2003 by Jane Elfers and her management team," Baker said. "Jane will remain in her current role as president and CEO and we are extremely fortunate to benefit from her continued leadership." "We are looking forward to working with NRDC and exploring new options for the Lord & Taylor brand going forward," Elfers said. Robert Baker, NRDC principal, said NRDC's strategy going forward will be to leverage the strong Lord & Taylor brand with its existing management and store teams to continue operating Lord & Taylor as an upscale fashion retailer. "We are excited about the future operating prospects of the business," he said. The real estate portfolio is being reviewed and no decisions have been made on any individual stores. Tri-Artisan Partners LLC and Bear Stearns & Co., Inc. served as financial advisors for NRDC Equity Partners throughout the transaction. Stroock & Stroock & Lavan LLP served as legal counsel. Goldman Sachs, JPMorgan and the law firm of Jones Day represented Federated. About Apollo Real Estate Advisors, L.P. Apollo Real Estate Advisors is one of the most active and prominent opportunistic real estate investors in the U.S. and internationally. Apollo specializes in acquiring undermanaged and distressed properties and developing properties in major urban areas throughout the U.S. and Europe. Since Apollo's founding in 1993, the firm has overseen the investment of eight real estate funds totaling more than $5 billion in equity. The firm's Web site is http://www.apollorealestate.com/. About NRDC NRDC Equity Partners is an affiliate of National Realty & Development Corp., the owners and developers of over 14 million square feet of shopping centers throughout the United States. National Realty & Development Corp. is a privately-held company that has been in business for over 40 years and has built a reputation and long-standing relations with the strongest retailers in the industry today. NRDC acquires operating companies where it can assist in real estate strategy. DATASOURCE: NRDC Equity Partners, LLC CONTACT: Michelle Manoff of Rubenstein PR, +1-212-843-8051, , for NRDC Equity Partners, LLC Web site: http://www.apollorealestate.com/

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