Department store operator Stage Stores Inc has completed its acquisition of privately-owned retail chain Peebles Inc for $167 million.

The Houston-based company, which announced its intention to purchase Peebles a month ago, now controls 514 stores across the US under the Stage, Bealls, Palais Royal and Peebles name.

As part of the acquisition, however, Stage has assumed $54.9m worth of debt, which it plans to offset by the sale of Peebles' private label credit card portfolio.

The Virginia company's revolving credit facility, which was estimated at $46.9m at the announcement of the deal, had a balance of $33.8m at closing.

Stage has also boosted its existing revolving credit facility commitment from $175m to $250m.

Chairman, president and CEO Jim Scarborough said the acquisition made sense because of the similar retail focus of both companies.

"We believe the strategic, operational and economic potential of this business combination is exceptional and should result in enhanced value for our shareholders, our customers, our employees and our suppliers," he said.