Sun Capital Taking Limited Stores Stake

COLUMBUS, OH-Private-equity firm Sun Capital Partners is getting a 75% interest in the Limited Stores chain from parent Limited Brands in a deal where it will contribute $50 million of capital into the business and arrange for a $75 million credit facility. Limited Brands is not receiving cash for the 260-unit chain.

The deal comes as Limited closes its sale of 75% of its 624-store Express chain to Golden Gate Capital for $602 million. Limited is selling the chains to concentrate more on its intimate-wear and personal-care outfits, Victoria’s Secret and Bath & Body Works.

Sun Capital management says it plans to grow the Limited chain. Limited Stores’ same-store sales rose 5% in May year over year, after sliding 6% in April. Express was up 9% in April and increased 4% in May.