PE-backed Canadian retailer HBC closes Saks purchase for $2.9 bln

Toronto-based Hudson's Bay Co (TSX: HBC) has completed its buy of New York-based luxury retailer Saks Inc (NYSE: SKS) for US$16.00 per share, in a deal valued at US$2.9 billion, including debt. The all-cash transaction was financed by a combination of new debt financing, and US$1 billion of new equity issued by way of a bought deal prospectus offering of 16,050,000 subscription receipts, and a private placement of common shares and common share purchase warrants. As previously announced, affiliates of Ontario Teachers’ Pension Plan and West Face Capital contributed to the funding of the deal. HBC is backed by U.S. private equity firm NRDC Equity Partners.

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