Saks Fifth Avenue-owner Hudson’s Bay agrees to buyout deal
Executive chairman paves way for store operator to turn round out of public light
Saks Fifth Avenue-owner Hudson’s Bay agreed to a buyout by a consortium of investors led by its executive chairman on Monday, in a deal that will allow the department store chain to navigate an increasingly challenging retail and real estate market out of the public light.
The investor group has offered to buy the shares of HBC it does not already own for $10.30 apiece, a 62 per cent premium to the group’s shares before the Richard Baker-led consortium made its interest in acquiring the entirety of the company known.
The buyout price falls near the low-end of a valuation a special committee at HBC had prepared by its advisers, underlining the continued struggles facing retail and department store companies.