May Department Stores Co. to acquire David's Bridal for $436M

The May Department Stores Co., St. Louis, has agreed to pay $436 million for David's Bridal, Conshohocken, Pa., the largest U.S. wedding-gown retailer. The move, which was announced on Monday, takes place three months after May signed a letter of intent to partner with the WeddingNetwork.com to create an Internet-based wedding services and merchandise portal.

May will pay $20 a share for David's Bridal, a 73% premium above Bridal's closing price on Friday. Shares of David's Bridal rose $8.81 to $19.75 during Monday's abbreviated trading session.

May will tie its gift registry business, which include its Lord & Taylor and Filene's department stores, to David's 110 stores in 35 states. The companies will link David's Bridal's Web site with WeddingNetwork.com by the end of this month.

David's Bridal will operate as a division of May. Bob Huth will continue as president and CEO of the division. There will be no changes in the employment status of associates of David's Bridal due to the acquisition.

May operates 422 department stores in 36 states and the District of Columbia. With the David's Bridal acquisition, May will operate 532 store locations in 40 states, the District of Columbia, and Puerto Rico by fiscal year-end 2000.