NEW YORK, N.Y. - Retailer Saks Fifth Avenue agreed to be purchased by Hudson's Bay for $2.4 billion, in an all-cash deal that is probably as much about high-end real estate as luxury clothes, the Wall Street Journal reported.
Hudson's Bay Chair and CEO Richard Baker said he and his partners began eyeing Saks five years ago, but bided their time while they got Hudson's Bay into shape for an initial public offering completed in November, the Journal story said.
"With the addition of Saks, HBC will offer consumers an unprecedented range of retailing categories and shopping experiences," said Baker, who grew up and lives in Greenwich, Conn., in a story by the Motley Fool. "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."
Hudson's Bay is paying $16 a share to become the latest owner of a swanky chain that has changed hands multiple times since it was set up as a specialty department store in 1924, the Journal said.
A Saks spokeswoman declined to say what alternatives the company considered before agreeing to Hudson's Bay deal. the Journal said.