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) - 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.