Saks Incorporated Shareholders Approve Merger with Hudson's Bay Company
Saks Incorporated, Hudson's Bay Company
Hudson's Bay Company announced that the merger of Saks Incorporated with HBC was approved at a special meeting of Saks Incorporated shareholders held earlier today. Accordingly, HBC plans to complete the merger on November 4, 2013.
The merger will create a premier North American fashion retail business centered on three iconic retail brands - Hudson's Bay, Lord & Taylor and Saks Fifth Avenue. The combined Company will operate a total of 320 stores, including 179 full-line department stores, 72 outlet stores and 69 home stores in prime retail locations throughout the U.S. and Canada, along with three e-commerce sites. The combined Company would have generated pro forma sales and normalized EBITDA in fiscal 2012 of approximately C$7.2 billion and C$587 million, respectively, before any synergies.
"With the addition of Saks Fifth Avenue, we will begin an exciting new era for HBC," said Richard Baker, HBC's Governor and CEO. "By uniting Saks, Hudson's Bay and Lord & Taylor, we are creating a platform built upon three brands with a rich heritage in retailing. We will be well positioned to serve customers across a range of shopping experiences, including the luxury, mid-tier and outlet categories. We plan to invest in the growth potential of each brand and category. And, we will unlock the tremendous potential of the Company's world-class real estate assets. As we pursue our strategic growth plans, we look forward to driving increasing value for HBC shareholders."
Growth Opportunities for Saks Fifth Avenue
HBC has stated that it plans to expand the Saks' banner to Canada, opening as many as seven full-line Saks Fifth Avenue stores and up to 25 OFF 5TH outlet locations over the next several years. The Company intends to expand Saks' e-commerce presence in Canada by establishing a Canadian saks.com website. HBC will also continue Saks' existing plans to further expand the OFF 5TH footprint in the U.S.
As previously announced, HBC expects the merged enterprise to achieve C$100 million of annual synergies within three years through a combination of shared services, operational efficiencies and implementing best practices across banners.
Experienced Retailing Leadership