CITIGROUP BUYS SEARS CREDIT CARD BUSINESS
November 25, 2003
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New York — Citigroup said today that it has completed the previously announced acquisition of the Sears Credit Card and Financial Products business. The purchase price of $31.8 billion, at closing, included a 10% premium on Sears private label and bankcard credit card receivables of $28.6 billion or $2.9 billion, and $0.3 billion for other assets, business facilities and employees.
Included in the purchase price was the assumption of $10.4 billion in securitized debt and other liabilities. Additionally, Citigroup and Sears have entered into a multi-year marketing and servicing agreement across a range of each company’s businesses, products and services.
Editor’s note: Big banks and finance companies continue to merge and consolidate their businesses, and/or debt portfolios. They likely intend to take advantage of the economies of scale, and not pass the savings onto the consumer.
