Brooks Bros. Sale Agreement Signed

Marks & Spencer, Britain’s most profitable retailer, said Tuesday that it signed a previously announced agreement to purchase the swank U.S. clothing chain Brooks Bros. from Canada’s Campeau Corp. for $770 million.

But it reiterated that the Brooks Bros. purchase is conditional on the success of Campeau’s bid for Federated Department Stores, which is being contested by R. H. Macy & Co.

Marks & Spencer agreed to pay $720 million for Brooks Bros. itself and for preferential rights to lease space in the enlarged 800-strong Campeau stores empire.

The purchase price also included $50 million in exchange for Campeau’s pledge not to set up a speciality menswear chain in the next five years that would compete with Brooks Bros. in Japan or the United States.