Hudson’s Bay to Buy Saks for $2.4B

by Karl Utermohlen | July 29, 2013 1:33 pm

Hudson’s Bay to Buy Saks for $2.4B

Canadian chain Hudson’s Bay (HBC[1]) has agreed to buy Saks (SKS[2]), a Fortune 1000 company headquartered in Birmingham, Alabama.

The New York Times reports[3] that Hudson’s Bay, owner of Lord & Taylor department stores, will shell out $2.4 billion in cash for the high-end retailer Saks. The company is primarily known as the flagship store of Saks Fifth Avenue, a luxury specialty store located in Manhattan’s posh Upper East Side.

Hudson’s Bay will purchase Saks for $16 a share, a figure that’s about 4.5% higher than their closing price on Friday.

The Canadian company plans to pay for the transaction with $1 billion of new stock, $400 million of new bonds, borrowing $1.8 billion in loans, and cash. The total value of this merger is estimated to be $2.9 billion after debt is taken into account.

After the merger goes through, Hudson’s Bay will have 320 stores around the country that reported a combined revenue of $7 billion in 2012.

Endnotes:
  1. HBC: http://studio-5.financialcontent.com/investplace/quote?Symbol=HBC
  2. SKS: http://studio-5.financialcontent.com/investplace/quote?Symbol=SKS
  3. The New York Times reports: http://dealbook.nytimes.com/2013/07/29/saks-to-sell-itself-to-owner-of-lord-taylor/?_r=0

Source URL: http://investorplace.com/2013/07/hudsons-bay-to-buy-saks-for-2-4b/
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