Citigroup Completes Acquisition of Sears Credit Card 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 companys businesses, products and services. Citi said that there would be no immediate changes to the Sears card programs or operations. Customers will be provided with world-class customer service and can expect to receive the same features and benefits that they now enjoy. They should continue to use their cards in the same manner they do today. With the addition of 64 million Sears accounts and $29 billion card receivables (prior to any FFIEC and other purchase adjustments), the acquisition enhances Citigroups number one card market position, increasing its portfolio to 161 million accounts and $146 billion card receivables in North America, and 176 million accounts and $160 billion card receivables globally.