Target Corporation has reached a definitive agreement to sell its Marshall Field's business unit to The May Department Stores Company for approximately $3.2 billion in cash.

The deal includes 62 Marshall Field's stores, three distribution centers and approximately $600 million of Marshall Field's credit card receivables, plus nine Mervyn's stores in the Twin Cities. The transaction is subject to regulatory approval and is expected to be completed shortly after approval is obtained.

May intends to retain the Marshall Field's nameplate and maintain product exclusives, such as Frango mints, that are long-standing traditions at Marshall Field's. The headquarters for the division will remain in Minneapolis, current Marshall Field's employees will be offered employment by May, and Linda L. Ahlers will continue as president of Marshall Field's. With the addition of Marshall Field's, The May Department Stores Company will operate 500 department stores in 39 states.