24th Jun 2005 09:30
HSBC Holdings PLC24 June 2005 HSBC TO ACQUIRE BON-TON PRIVATE LABEL CREDIT CARD ACCOUNTS The Retail Services business of HSBC North America Holdings Inc is to acquirethe private label credit card accounts and related assets of The Bon-Ton Stores,Inc., a United States-based retailer operating 139 department stores and twofurniture stores under the Bon-Ton and Elder-Beerman names. Subject to regulatory approval and other conditions, HSBC will pay the value ofthe customer account balances, estimated to be US$300 million for the quarterended March 2005, together with a five per cent premium. HSBC and Bon-Ton expectto close the transaction in July 2005. HSBC and Bon-Ton will enter into a seven-year agreement in which Bon-Ton willparticipate 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 lookforward to building a successful relationship with Bon-Ton, and are confidentthat our expertise in credit, marketing analytics and customer loyalty will helpthem continue to grow and build upon their business success." Notes to editors: 1. HSBC Retail ServicesHSBC Retail Services is a leading issuer of private label (merchant branded)credit cards in the US. This business provides flexible, customised credit cardsolutions for many of the world's premier retailers and manufacturers and hasover 60 active merchant relationships. For more information, visitwww.hsbcretailservices.com. 2. HSBC - North AmericaHSBC - North America comprises all of HSBC's US and Canadian businesses,including the former Household businesses. The company's businesses serve morethan 60 million customers in five key areas: personal financial services,consumer finance, commercial banking, private banking and corporate, investmentbanking and markets. Financial products and services are offered under the HSBC,HFC and Beneficial brands. For more information, visit: www.hsbcusa.com. 3. HSBC Holdings plcHSBC Holdings plc serves over 110 million customers worldwide throughapproximately 9,800 offices in 77 countries and territories in Europe, theAsia-Pacific region, the Americas, the Middle East and Africa. With assets ofUS$1,277 billion at 31 December 2004, HSBC is one of the world's largest bankingand financial services organisations. HSBC is marketed worldwide as 'the world'slocal bank'. 4. Bon-Ton Stores, Inc.The Bon-Ton Stores, Inc. operates 139 department stores and two furniture storesin 16 states from the Northeast to the Midwest under the Bon-Ton andElder-Beerman names. The stores carry a broad assortment of quality brand-namefashion apparel and accessories for women, men and children, as well asdistinctive home furnishings. For further information, please visit the investorrelations section of Bon-Ton's website at www.bonton.com/investor/home.asp. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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