Hudson’s Bay to buy Saks for $2.9bn

The Canadian department store operator is set to acquire the US retailer for US$16 per share

Canadian department store operator Hudson’s Bay Company has acquired US luxury retailer Saks in a multi billion dollar deal. Hudson’s Bay is to acquire the company for US$16 per share in an all-cash transaction valued at $2.9bn, including debt. The transaction, which remains subject to regulatory approval, is expected to close before the end of this year.

Hudson's Bay Company, which already owns retail chains Lord & Taylor and Hudson’s Bay, is planning to continue building on Saks' identity as a luxury retailer. The combined company will operate 320 stores in the US and Canada, along with three e-commerce sites. The merger is also expected to drive significant revenue growth opportunities for Hudson’s Bay, with the company planning to take Saks into Canada through full line, outlet and online formats.

"This exciting portfolio of three iconic brands creates one of North America's premier fashion retailers," said Richard Baker, Hudson’s Bay Chairman and CEO. "I've had a long connection with Saks over the years, and am thrilled to bring one of the world's most recognised luxury retailers into the HBC family. With the addition of Saks, Hudson's Bay Company will offer consumers an unprecedented range of retailing categories and shopping experiences. This acquisition will increase our growth potential both in the US and Canada, generate significant efficiencies of scale, add to our powerful real estate portfolio and deliver substantial value to our shareholders."

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