Sears to up stake in Sears Canada

Hoffman Estates, Ill. Sears Holdings Corp. will buy an additional stake in Sears Canada, the retailer said Friday.

The company, led by financier Edward Lampert, signed deals to buy about 18.7 million shares of Sears Canada, or about 17% of its outstanding stock, from Pershing Square, LP, Pershing Square II LP and Pershing Square International Ltd. for $30 Canadian dollars ($30) per share. Pershing Square, activist investor William Ackman's investment firm, will not hold any shares of Sears Canada once the deal closes.

The acquisition is expected to close on Tuesday. Once it is completed, Sears Holdings will own approximately 90% of the company.

Sears Holdings also provided a first-quarter profit outlook in range of analysts' expectations on Friday. The retailer indicated that its quarter-to-date same-store sales are up 1.7%, with Kmart rising 3.2% and Sears domestic stores climbing 0.3%.

The company said Kmart saw improvement in clothing, home and toys, while its Sears stores reported better sales of home appliances, somewhat offset by lower sales of tools and home electronics.