
The Deal: Hudson's Bay Takes Saks Off The Rack for $2.9B
NEW YORK (
) --
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) - Get Report
and
Royal Bank of Canada
(RY) - Get Report
.
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) - Get Report
,
Morgan Stanley
(MS) - Get Report
and
Guggenheim Securities
acted for financial advice and
Wachtell, Lipton, Rosen & Katz
as legal counsel.









