FOR IMMEDIATE RELEASE – November 2, 2004
Klehr, Harrison, Harvey, Branzburg & Ellers represented a joint venture consisting of Lubert-Adler Partners LLP, Klaff Realty, Cerberus Capital Management, and Sun Capital Partners in the acquisition of Mervyn’s department stores from Target Corporation for $1.2 billion. Mervyn’s is a promotional, middle-market department store, based in the San Francisco Bay area, with 257 stores in 13 states, primarily in the West and South. In 2003, Mervyn’s generated $3.6 billion in revenue and $160 million in pretax segment profit. The joint venture intends to continue operating the Mervyn’s chain to improve its market position.
Lubert-Adler Partners LP is a Philadelphia real estate investor with $2.5 billion under management. Sun Capital Partners, Inc., turnaround specialists from Boca Raton, Florida, have more than $1 billion of capital under management. Headquartered in New York City, Cerberus Capital Management L.P. and its affiliated entities manage funds and accounts with capital in excess of $14 billion.