Federated to Pay $123M Cash for Horne

CINCINNATI — Federated Department Stores has agreed to pay a base price of $123 million for Joseph Horne Co., the Pittsburgh-based department store chain.

Federated said Thursday it has signed a merger agreement following a letter of intent announced on April 29.

The payment will be in cash and the assumption of mortgage debt and is subject to post-closing adjustments. In addition, Federated said it will assume some of Horne’s existing liabilities in the merger, which is expected to be closed in late May or early June.

As noted, Horne’s 10 stores will be merged into Federated’s Lazarus department store division bringing that division to 50 stores and sales of about $1.2 billion.