TORONTO-Hudson’s Bay Co. has entered into an agreement with Saks Inc. whereby Hudson’s Bay will purchase Saks for $16 a share, in a deal valued at about $2.9 billion including debt.
A joint statement from the two retailers said both of their boards of directors have approved the deal, which is expected to close before the end of the calendar year, subject to the approval of Saks’ shareholders, regulatory approvals and other closing conditions. When the acquisition is finalized, it will bring under one corporate umbrella Hudson’s Bay, Saks Fifth Avenue and Lord & Taylor. It will form a combined company with 320 stores, including 179 full-line department stores, 72 outlet stores and 69 home stores throughout the United States and Canada, along with three e-commerce sites.
Hudson’s Bay “will continue to build upon Saks’ market-leading position and identity as a luxury retailer,” the statement said.
The combined company would have generated about $7 billion in sales in fiscal 2012. The statement said Hudson’s Bay expects to achieve about $97 million in annual synergies within three years after the deal closes.