24 June 2005
The Retail Services business of HSBC North America Holdings Inc is to acquire the private label credit card accounts and related assets of The Bon-Ton Stores, Inc., a United States-based retailer operating 139 department stores and two furniture stores under the Bon-Ton and Elder-Beerman names.
Subject to regulatory approval and other conditions, HSBC will pay the value of the customer account balances, estimated to be US$300 million for the quarter ended March 2005, together with a five per cent premium.
HSBC and Bon-Ton expect to close the transaction in July 2005. HSBC and Bon-Ton will enter into a seven-year agreement in which Bon-Ton will participate in the revenue generated by the credit sales.
“Our new partnership with Bon-Ton is an important win for HSBC Retail Services, and we are proud that they chose us as their private label credit provider,” said Joseph Hoff, chief executive officer, HSBC Retail Services.
“We look forward to building a successful relationship with Bon-Ton, and are confident that our expertise in credit, marketing analytics and customer loyalty will help them continue to grow and build upon their business success.”
HSBC North America comprises all of HSBC’s US and Canadian businesses, including the former Household businesses. The company’s businesses serve more than 60 million customers in five key areas: personal financial services, consumer finance, commercial banking, private banking and corporate, investment banking and markets. Financial products and services are offered under the HSBC, HFC and Beneficial brands.
HSBC North America’s Retail Services business is a leading issuer of private label (merchant branded) credit cards in the US. The business provides flexible, customised credit card solutions for many of the world’s premier retailers and manufacturers and has over 60 active merchant relationships.
Media enquiries to pressoffice@hsbc.com
