Saks, Lord & Taylor May Soon Become Siblings

by William White | June 25, 2013 10:33 am

Saks (SKS[1]), the 94-year-old department store, may have a new owner soon.

Saks hired Goldman Sachs (GS[2]) last month to look into a possible sale of the company. Now, Lord & Taylor owner Richard A. Baker is looking to place a bid on Saks, which is one of his main competitors, according to The New York Times[3].

The purchase of Saks would go along with Baker’s previous purchases of Lord & Taylor and Hudson’s Bay. Saks could be expanded into Canada, where Hudson’s Bay already has a strong foothold, and Hudson’s Bay could expand to the United States.

The NYT points out that Baker could also be looking at Saks from a real estate point of view. After his purchase of Hudson’s Bay, Baker then sold some of the rights to leases to Target (TGT[4]) in a $1.8 billion deal.

Baker already has a few Saks executives[5] in his ranks, including Hudson’s Bay’s Chief Operating Officer Donald Watros.

Endnotes:
  1. SKS: http://studio-5.financialcontent.com/investplace/quote?Symbol=SKS
  2. GS: http://studio-5.financialcontent.com/investplace/quote?Symbol=GS
  3. The New York Times: http://dealbook.nytimes.com/2013/06/24/owner-of-hudsons-bay-explores-a-deal-to-buy-saks/?_r=0
  4. TGT: http://studio-5.financialcontent.com/investplace/quote?Symbol=TGT
  5. Saks executives: http://www.theglobeandmail.com/report-on-business/international-business/us-business/hudsons-bay-eyes-buying-saks/article12773765/

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