NEW YORK (
Hudson's Bay Co.
said Monday it was taking the "for sale" sign off iconic department store chain
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
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
Royal Bank of Canada
BofA Merrill Lynch acted as lead financial adviser to HBC, joined by
RBC Capital Markets
Willkie Farr & Gallagher
provided legal counsel. Saks turned to
acted for financial advice and
Wachtell, Lipton, Rosen & Katz
as legal counsel.