Bloomberg
Hudson’s Bay Co., a middle-market Canadian department store chain with a similar assortment to Macy’s, has agreed to pay $2.4 billion to acquire Saks Inc., one of America’s most prestigious luxury retailers.
Hudson’s Bay, founded in the 17th century as a fur trading company, will pay $16 a share in cash, a 30 percent premium to New York-based Saks’s closing price on May 20, the day before media reports emerged that Saks was exploring alternatives, according to a statement today. The transaction, which brings together the Hudson’s Bay, Lord & Taylor and Saks Fifth Avenue brands, creates a company that will operate 320 stores.
The audacious move is a coup for Hudson’s Bay Chief Executive Officer Richard Baker, 48, who over the past seven years has acquired and refreshed retail chains while leveraging their real estate. Saks will continue to be based in New York and retain its existing management, Baker said today. While the newly merged entity will combine back-office operations to save costs, the three chains will retain separate buying operations so the merchandise will reflect each brand’s identity.