PE-Backed Canadian Retailer Hudson's Bay to Buy Saks for $2.9B

Canadian retailer Hudson's Bay Co. (TSX: HBC) has agreed to acquire Saks Inc. (NYSE: SKS) for approximately US$2.9 billion. The boards of directors of each company have approved the deal, which is expected to close by the end of this year. HBC will finance the acquisition, and refinance some existing debt, with US$1.0 billion of new equity, US$1.9 billion of senior secured loans, US$400 million of senior unsecured notes, and cash on hand. Affiliates of Ontario Teachers’ Pension Plan and West Face Capital have separately committed to provide a combined US$750 million of equity funding to support the deal. HBC was bought by U.S. private equity firm NRDC Equity Partners in 2008, and went public in late 2012.

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