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Hudson Bay Co. Announces Acquisition Of Saks Inc.

Hudson’s Bay Company, which operates Hudson Bay department stores and Home Outfitter stores in Canada as well as Lord & Taylor in the U.S.,  and Saks Incorporated—Saks Fifth Ave. and Off 5th stores— have announced that they have entered into a definitive merger agreement whereby Hudson Bay (HBC) will acquire Saks in an all-cash transaction valued at approximately $2.9 billion, including debt. The transaction is expected to close before the end of the calendar year.

This transaction will bring together Hudson’s Bay, Lord & Taylor and Saks Fifth Avenue to create a North American retailer that addresses a broad spectrum across the luxury, mid-tier and outlet retail sectors, according to the companies.

Combined, Hudson Bay and Saks will operate 320 stores, including 179 full-line department stores, 72 outlet stores and 69 home stores in the U.S. and Canada, along with three e-commerce sites.

“This exciting portfolio of three iconic brands creates one of North America’s premier fashion retailers,” 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.”

Steve Sadove, Chairman and CEO of Saks, commented, “We believe this transaction delivers compelling value to our shareholders and that Saks Fifth Avenue is an excellent fit within the HBC organization. We have made significant progress over the past few years to position Saks for future growth and to evolve into an omni-channel retailer.”

The acquisition of Saks is expected to drive significant revenue growth opportunities for HBC, including the introduction of Saks into Canada through full-line, outlet and online formats, building upon Canada’s position as’s largest international ship-to market. The combination will maximize existing e-commerce platforms across all three banners to enhance customers’ shopping experience. HBC also plans to continue Off 5th’s expansion in the U.S.