HBC closes Saks deal

Toronto - Canadian retail conglomerate Hudson's Bay Company has added another feather to its cap, successfully completing its previously announced acquisition of U.S. retail icon Saks Inc., the owners of department store Saks Fifth Avenue.
     HBC paid $16 per share in an all-cash deal valued at approximately $2.9 billion, including the assumption of Saks' debt.
     With the acquisition, HBC said it has created a premier North American fashion retail business centered on three brands: Hudson's Bay in Canada and Lord & Taylor and Saks Fifth Avenue in the United States. The combined company operates 320 stores, including 179 full-line specialty department stores, 72 outlet stores and 69 home stores in the U.S. and Canada, along with three e-commerce sites.
     The company also operates Home Outfitters in Canada.
     The transaction was financed using a combination of new debt financing and approximately $1 billion of new equity. As part of the deal, an affiliate of the Ontario Teachers' Pension Plan has become a shareholder in HBC.
     HBC Vice Chairman Bonnie Brooks has said the company intends to open at least seven Saks Fifth Avenue stores in Canada over the next two years as well as about 20 Saks Off Fifth Avenue discount outlets.
     She also indicted the company intends to take Saks Fifth Avenue to Europe and Asia as well.
     The company has also named Marigay McKee, formerly chief merchant for Harrod's - the iconic British retailer - president of Saks

Furniture Today Staff | Staff Editors

Furniture Today covers all the news concerning manufacturers, retailers and suppliers in the home furnishings sector.

High Point Videos

Scott Brothers at High Point Market with Bill McLoughlin

See our videos from the Spring 2017 High Point Market featuring coverage of the Scott Brothers, Christopher Guy, 3D furniture printing, and our Habitat for Humanity building project. See videos! Video coverage sponsored by AcceptanceNOW.

Digital Edition

Furniture Today Digital Edition

See the digital edition of Furniture/Today, which allows you to flip through the pages, click on any underlined area to visit a website or send an e-mail, search to find content in the magazine, or share pages with your friends. See the latest issue!