Canadian retail conglomerate Hudson's Bay Company has added another feather to its cap, successfully completing its previously announced acquisition of U.S. retail icon Saks Inc., the owners of department store Saks Fifth Avenue.
HBC paid $16 per share in an all-cash deal valued at approximately $2.9 billion, including the assumption of Saks' debt.
With the acquisition, HBC said it has created a premier North American fashion retail business centered on three brands: Hudson's Bay in Canada and Lord & Taylor and Saks Fifth Avenue in the United States. The combined company operates 320 stores, including 179 full-line specialty department stores, 72 outlet stores and 69 home stores in the U.S. and Canada, along with three e-commerce sites.
The company also operates Home Outfitters in Canada.
The transaction was financed using a combination of new debt financing and approximately $1 billion of new equity. As part of the deal, an affiliate of the Ontario Teachers' Pension Plan has become a shareholder in HBC.
HBC Vice Chairman Bonnie Brooks has said the company intends to open at least seven Saks Fifth Avenue stores in Canada over the next two years as well as about 20 Saks Off Fifth Avenue discount outlets.
She also indicted the company intends to take Saks Fifth Avenue to Europe and Asia as well.
The company has also named Marigay McKee, formerly chief merchant for Harrod's - the iconic British retailer - president of Saks.
