Hudson’s Bay Company confirmed this morning its intention
to acquire Saks Incorporated (operated of Saks Fifth Avenue and its OFF 5TH
outlets) for $16USD per share, approximately $2.9 billion. Combined HBC will
operate 320 stores (179 full line department stores, 72 outlet stores, 69 home
stores, and 3 e-commerce sites) under the Hudson’s Bay, Lord & Taylor, and Saks
Fifth Avenue banners.
"This exciting portfolio of three iconic brands
creates one of North America's premier fashion retailers," said Richard
Baker, HBC's 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 recognized luxury
retailers into the HBC family. With the addition of Saks, HBC will offer
consumers an unprecedented range of retailing categories and shopping
experiences. This acquisition will increase our growth potential both in the
U.S. and Canada, generate significant efficiencies of scale, add to our
powerful real estate portfolio and deliver substantial value to our
shareholders."
Once the deal is finalized, HBC will recognize
significant cost savings and growth opportunities both in Canada and the United
States. Saks will continued to be based and operated from it’s base in New York
City, but a Canadian roll-out was confirmed for both Saks Fifth Avenue and OFF 5TH.
In a later media call, Baker stated his intention for an eventual seven full line Saks Fifth Avenue stores in Canada, and a further two dozen OFF 5TH locations. Some of these locations could be converted from current Hudson's Bay locations. This move comes as Nordstrom prepares to open its first Canadian store next year.
[Click here for the official press release.]
In a later media call, Baker stated his intention for an eventual seven full line Saks Fifth Avenue stores in Canada, and a further two dozen OFF 5TH locations. Some of these locations could be converted from current Hudson's Bay locations. This move comes as Nordstrom prepares to open its first Canadian store next year.
[Click here for the official press release.]