NEW YORK (The Deal) -- Hudson's Bay Co. said Monday it was taking the "for sale" sign off iconic department store chain Saks (SKS) for $16 per share or about $2.9 billion. There is a 40 day "go shop" period.
The deal will combine Saks with Canada's Hudson's Bay department store and the Lord & Taylor chain -- which NRDC Equity Partners bought in 2006 for $1.2 billion before it acquired Hudson's Bay in a company that generated pro forma sales and normalized EBITDA in fiscal 2012 of approximately C$7.2 billion ($7 billion) and C$587 million respectively.
Financing for the transaction is expected to come from $1 billion of new equity,$1.9 billion in senior secured loans, $400 million of senior unsecured notes and available cash. Ontario Teachers' Pension Plan and West Face Capital Inc. are putting $500 million and $250 million of equity funding, respectively, into the deal. Additional credit facilities are being provided by BofA Merrill Lynch (BAC) and Royal Bank of Canada (RY).
BofA Merrill Lynch acted as lead financial adviser to HBC, joined by RBC Capital Markets, while Stikeman Elliott and Willkie Farr & Gallagher provided legal counsel. Saks turned to Goldman Sachs (GS), Morgan Stanley (MS) and Guggenheim Securities acted for financial advice and Wachtell, Lipton, Rosen & Katz as legal counsel.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV