HBC Announces Deal to Acquire Saks for $2.9 billion

This article was last updated on April 16, 2022

Canada: Oye! Times readers Get FREE $30 to spend on Amazon, Walmart…
USA: Oye! Times readers Get FREE $30 to spend on Amazon, Walmart…

In a recent announcement made by the vast Canadian retailer, Hudson’s Bay Co., it has declared its intention to buy out a U.S. luxury retailer, Saks Inc., in a mutually agreed deal of worth US$2.9 billion. The Toronto-based company revealed its plan on Monday morning, as it prepares to pay up US$16 per Saks share, along with overtaking the responsibility of assuming its debt as part of the transaction.

HBC has revealed its plans to operate the Saks as a separate unit headquartered in New York, though it also announced to work on a method to bring the Saks brand in Canada through online and other formats. HBC’s other holdings include The Bay and Lord & Taylor. The chairman and chief executive of HBC, Richard Baker, mentioned in a press statement that “this exciting portfolio of three iconic brands creates one of North America’s premier fashion retailers.” He added that “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.”

Saks currently operates 42 stores in the U.S., including its flagship Saks Fifth Avenue in New York. Meanwhile, the HBC currently has 48 Lord & Taylor department stores in the U.S. Northeast, along with 90 Bay department stores in Canada and 69 Home Outfitters housewares stores in Canada. Hence collaboratively, the company will now collectively run about 320 stores, including 179 full-line department stores and about C$7.2 billion of sales annually.