Today, the Hudson’s Bay Company announced that they have entered into a definitive merger agreement and will acquired the American luxury retailer Saks Fifth Avenue in a $2.9 billion deal that will see Saks stores coming to Canada! The deal hasn’t been a secret as many news outlets were reporting that HBC was in talks to acquire the luxury retailer.
Saks Fifth Avenue currently has 42 stores in the states, including the flagship New York City location. With the deal there will be some Bay stores that will be converted into Saks stores, some Saks stores will go into exisiting Bay locations (Queen St. flagship store will probably be one of them), and some new Saks locations will be opened as well. In addition to the regular locations, there are also plans to build 25 Saks Off Fifth discount stores in Canada.
HBC also received support from two other non-fashion related parties to acquire Saks; the Ontario Teachers Pension Plan and Canadian private equity firm West Face Capital. HBC adds Saks to its already impressive assortment of stores which includes The Bay, and Home Outfitters in Canada and Lord & Taylor in the US, with a total of 320 stores.