Lord & Taylor owner acquires Saks in $3B deal
Toronto--Hudson’s Bay Company (HBC), an operator of department store chains in Canada as well as Lord & Taylor in the United States, announced Monday the acquisition of Saks Inc. in an all-cash transaction valued at $2.9 billion.
HBC and Saks said each company’s board of directors has approved the deal and it is expected to close before the end of the calendar year, subject to approval by Saks shareholders.
Along with Lord & Taylor, HBC owns Hudson’s Bay, a chain of 90 department stores in Canada, and Home Outfitters, a Canadian chain of specialty superstores.
NRDC Equity Partners’ Robert Baker, Bill Mack, Lee Neibart and Richard Baker bought HBC in 2008 after purchasing Lord & Taylor in 2006. It was founded in 1670 as fur trading company and is the longest continually operated retailer in North America.
The addition of Saks means that HBC now will cover the luxury, mid-tier and outlet retail sectors, operating a total of 320 stores, including 179 full-line department stores, 72 outlet stores and 69 home stores in the U.S. and Canada, as well as three e-commerce sites.
The acquisition also means the opening of Saks Fifth Avenue, Off 5th outlet stores and Saks.com in Canada. In addition, HBC said it plans to continue to open more Off 5th locations in the U.S. Currently, Saks has more outlet than full-line stores, 67 as compared with 41, respectively.
“With the addition of Saks, HBC will offer consumers an unprecedented range of retailing categories and shopping experiences,” said Richard Baker, HBC’s Chairman and CEO. “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.”
Last month, reports surfaced, and then were shot down, that Saks would merge with Neiman Marcus, which is allegedly exploring a sale or public offering.