Hudson's Bay Company acquires Saks Fifth Avenue
The Hudson’s Bay Company completed its acquisition of Saks Incorporated today (November 4). The merger means that HBC will include three North American retail brands: Hudson’s Bay, Lord & Taylor, and Saks Fifth Avenue.
According to a news release, HBC acquired Saks Fifth Avenue for US$16 per share in an all-cash transaction valued at US$2.9 billion. As a result, HBC will operate a total of 320 stores, including 179 department stores, 72 outlet stores, 69 home stores, and three online stores.
"This exciting portfolio of three iconic brands creates one of North America's premier fashion retailers," Richard Baker, HBC's chairman and CEO, stated in a July news release, when the Canadian company announced the merger. "I've had a long connection with Saks over the years, and am thrilled to bring one of the world's most recognized luxury retailers into the HBC family. With the addition of Saks, HBC will offer consumers an unprecedented range of retailing categories and shopping experiences."
Saks Fifth Avenue is comprised of 41 stores in 20 states across the U.S; five international locations in Saudi Arabia, the United Arab Emirates, Bahrain, and Mexico; 69 Saks Fifth Avenue OFF 5TH stores; and e-commerce sites saks.com and saksoff5th.com.
News of HBC’s acquisition of Saks comes at a time of considerable change for Canadian department stores. In October, Sears Canada announced that it will close five locations across Canada by 2015. Sears’ downtown Vancouver flagship has already been torn down to make way for B.C.’s first Nordstrom location, and more than 100 Zellers locations are set for a takeover by U.S. chain Target.