Hudson’s Bay Co. has completed its previously announced purchase of Saks Fifth Avenue.
The price was $2.9 billion.
Hudson’s Bay now owns Saks, as well as Canadian chain Hudson’s Bay and Lord & Taylor. The company will operate a total of 320 stores, including 179 department stores, 72 outlet stores, and 69 home stores, along with three e-commerce sites.
The acquisition’s completion means that Saks chairman and CEO Steve Sadove and president and chief merchandising officer Ronald L. Frasch are leaving the company.
Harrods chief merchant Marigay McKee will replace Frasch, and the other top executives will report to Hudson’s Bay chairman Richard Baker.
The all-cash transaction was financed by a combination of new debt financing and approximately $1 billion in new equity issued via a new deal prospectus, as well as private placement of shares and common share purchase warrants. The debt financing consists of a $2 billion senior secured term loan, a $300 million junior secured term loan, and a $950 million asset-based loan.