Hudson’s Bay Company (HBC) and Saks Incorporated have announced their merger at the end of July. The takeover of all Saks share by HBC has been approved by each company’s board of directors and is expected to close before the end of the calendar year.
This transaction will bring together three of the retail industry’s most iconic brands in North America - Hudson’s Bay, Lord & Taylor and Saks Fifth Avenue. The combined company will operate 320 stores, including 179 full-line department stores, throughout the U.S. and Canada, along with three e-commerce sites.
HBC said it will continue to build upon Saks’ market-leading position and identity as a luxury retailer. Hence, Saks will operate separately under the HBC umbrella, including its own merchandising, marketing and store operations teams, and will remain headquartered in New York City. It is also expected that Saks will continue to be led by key members of its existing management team.
“This exciting portfolio of three iconic brands creates one of North America’s premier fashion retailers,” stated 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.”
In particular, HBC intends to introduce Saks into Canada and to build upon saks.com on the international market. The combination will maximize existing e-commerce platforms across all three banners.
