Hudson’s Bay Co.’s (TSX: HBC) $2.4 billion purchase of luxury retailer Saks Inc. (NYSE: SKS) is moving forward.
Saks announced after the close of the market on Sept. 10 that it did not receive any superior purchase proposals during a 40-day go-shop period during which it was allowed to solicit other buyers.
The deal, which was announced in July, has been approved by the boards of directors from both companies and is expected to close by the end of the year. Saks’ shareholders still need to approve the transaction.
Hudson’s Bay operates Canada’s largest department store chain of the same name, as well as Lord & Taylor and Home Outfitters. The purchase gives Hudson’s Bay 320 stores in the U.S. and Canada. In addition to the Saks brand, the deal adds many real estate properties, including Saks’ Fifth Avenue flagship store in New York, to Hudson’s Bay.
The purchase price works out to $16 per share. Saks shares closed at $12.28 on May 20, before media reports announced the possibility of a deal.
Another luxury retail chain, Dallas-based Neiman Marcus Inc., agreed to sell itself to Ares Management LLC and the Canada Pension Plan Investment Board for $6 billion in September.
For more on retail, see “Retail M&A: Time-Tested Brands Sell.”