DYLEX OUTFITS AMERICAN EAGLE
By Adnews Staff
Toronto-based specialty retailer Dylex Limited will sell three of its operating divisions to U.S.-based specialty-retailer American Eagle Outfitters, Inc. The $110 million cash deal includes the assets of Dylex's Thrifty's, Braemar and National Logistics Services divisions. Both companies have said the sale is not guaranteed. The deal, which is expected to be completed as soon as both companies reach an agreement and receive required approvals, will give American Eagle the opportunity to expand into the Canadian market. The retailer sells its own brand of American Eagle jeans, cargo pants and T-shirts in stores throughout the U.S. Thriftys currently operates 115 stores targeting young teens with its private-label Bluenotes, while Braemar operates 57 women's ready-to-wear clothing stores. The National Logistics Services division is a warehouse and distribution operation. In addition to acquiring the Thrifty's operation, American Eagle said it plans on converting several Braemar stores to Bluenotes and the remaining to American Eagle Outfitters stores.