NEW YORK — Dillard’s Inc. has agreed to acquire four former Zions Cooperative Mercantile Institution (ZCMI) department stores in Idaho and Utah from The May Department Stores Co., in a transaction that both elevates Dillard’s Western presence and consigns the ZCMI name to the retail scrap heap.
The deal, financial terms of which weren’t disclosed, is scheduled to be finalized on April 18, the same day that the eight remaining ZCMI stores will have their nameplates converted to Meier & Frank, May Co.’s Portland, Ore.-based division. The agreement includes leases and, in a separate transaction, existing inventory.
The units — two each in Utah and Idaho — will give Dillard’s six locations in Utah and three in Idaho. The company currently operates 340 stores in 29 states.
The ZCMI units are located in Grand Teton Mall in Idaho Falls, Idaho; Pine Ridge Mall in Pocatello, Idaho; Cache Valley Mall in Logan, Utah, and Red Cliffs Mall in St. George, Utah. As is the case with all stores owned by the Little Rock, Ark.-based department-store company, all will bear the Dillard’s name following completion of the agreement.
“We have enjoyed a consistent strong performance in our Western region over the past few months and we are thrilled to add these four stores to our Western base,” said William Dillard 2nd, chief executive of Dillard’s, in a statement.
May Co. acquired ZCMI in 1999, in a stock deal valued at about $52 million.