Saks Fifth Avenue has moved into its new home at Hudson’s Bay Co.
Hudson’s Bay said its deal to buy Saks Inc. for $3 billion, which includes debt and expenses, closed today. Saks stockholders get $16 for each of their shares, and Hudson’s Bay’s chief executive officer Richard Baker gets a third, and more upscale, chain for his retail business, which already included Hudson’s Bay and Lord & Taylor.
Much of the money from the sale will go to Mexican telecom billionaire Carlos Slim Helú, who held 23.1 million Saks shares, valued at $370 million, and Tod’s SpA chairman and ceo Diego Della Valle, who held 22.7 million shares, valued at $362.4 million, as of last count.
All together, the Toronto-based Hudson’s Bay now has 320 doors, including 179 full-line specialty department stores, 72 outlet stores and 69 home stores. Hudson’s Bay expects the deal will create roughly $100 million in annual cost savings within three years.
To fund the all-cash buyout, Hudson’s Bay sold about $1 billion in equity, which included common stock and warrants that were issued to HS Investment L.P., an affiliate of Ontario Teachers’ Pension Plan, and funds advised by West Face Capital Inc.
The debt financing included a $2 billion senior secured term loan, a $300 million junior secured term loan and a $950 million asset-based loan.
Saks shareholders gave the final thumbs-up to the deal on Friday, after which the retailer detailed which executives would leave the firm, following Stephen I. Sadove, chairman and ceo, and Ron Frasch, president and chief merchant. Among those moving on were Robert Wallstrom, executive vice president and president of Saks Off 5th; Denise Incandela, executive vice president and chief marketing officer, and Terron Schaefer, executive vice president and chief creative officer.
Alberta Ferretti's "Rainbow Week" sweaters are back. The designer closed her #MFW show with a few day-of-the-week sweaters, which first debuted on the catwalk last January as part of the pre-fall 2017 collection. #wwdfashion (📷: @delphineachard)