DALLAS, June 19, 2012 /PRNewswire/ -- Alliance Data Systems Corporation (NYSE: ADS), a leading provider of loyalty and marketing solutions derived from transaction-rich data, today announced its Retail Services business has agreed to acquire the private label credit card portfolio of The Bon-Ton Stores, Inc. (NASDAQ: BONT). As previously announced, Alliance Data will also manage the retailer's private label credit card program. The Bon-Ton Stores, Inc. operates 272 stores in 23 states across the Northeast, Midwest, and upper Great Plains, under the nameplates of: Bon-Ton, Bergner's, Boston Store, Carson's, Elder-Beerman, Herberger's, Younkers, and Parisian (in the Detroit area). A broad assortment of national- and private-brand fashion apparel and accessories, cosmetics and home furnishings are offered through Bon-Ton's stores and website, including its mobile-optimized e-commerce site. With corporate headquarters in York, PA, and Milwaukee, WI, The Bon-Ton Stores, Inc. was founded in 1898 and posted revenues of $2.95 billion in 2011.
"Alliance Data's retail heritage and proven credit and marketing tools were key factors in our partnership decision," said Brendan Hoffman, president and chief executive officer of The Bon-Ton Stores, Inc. "Working with Alliance Data, we're confident we can deliver additional value to our customers through our credit program. We look forward to collaborating with Alliance Data to help shape this program into an even greater driver of growth for our business."
Under terms of the agreement, Alliance Data will purchase The Bon-Ton Stores' existing file of private label credit card accounts, acquiring a portfolio of approximately $475 million. Details of the purchase price were not disclosed, other than to note it is consistent with industry norms. The acquired file carries only a modest level of delinquencies and, as such, Alliance Data believes that its performance will be consistent with traditional expectations. All new private label accounts for The Bon-Ton Stores will be consistent with Alliance Data's traditional credit quality standards. The transaction is scheduled to close in the third calendar quarter of 2012, subject to customary closing conditions. Alliance Data does not expect the acquisition of the portfolio to provide any accretion to earnings per share in 2012 due to the timing of the expected closing, coupled with fair value accounting treatment of the acquired portfolio.Alliance Data will deliver a marketing-driven private label credit card program that recognizes and rewards Bon-Ton cardholders with incentives and offers to drive brand loyalty and repeat purchases. Multichannel program services will leverage mobile and web-based solutions, extending the reach of the Bon-Ton credit card program to create greater opportunities for cardholders to interact with their favorite brands.