Hudson's Bay To Buy Saks Incorporated For US$16.00 Per Share - Quick Facts

(RTTNews) - Hudson's Bay Company (HBC.TO) and Saks Incorporated (SKS) announced they have entered into a definitive merger agreement, whereby Hudson's Bay will acquire Saks for US$16.00 per share in an all-cash transaction valued at approximately US$2.9 billion, including debt.

The transaction will create a North American retailer, which will operate 320 stores, including 179 full-line department stores, 72 outlet stores and 69 home stores in prime retail locations throughout the U.S. and Canada, along with three e-commerce sites. Hudson's Bay expects to realize C$100 million in annual synergies within three years.

Hudson's Bay further said it intends to continue paying a quarterly dividend of C$0.09375 per share through closing of the transaction; after closing, the company expects to reduce its quarterly dividend to C$0.05 per share to accelerate deleveraging in the short term.