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Saks Acquisition Of Hudson's Bay Company (HBC)

692 Words3 Pages

Saks’ is a Tennessee company based out of its headquarters in New York, New York. Saks’ is a premium clothing outlet for a target market of the higher class. They carry what any other retail store would have, clothing, shoes, jewelry and more. Hudson Bay Company has a lot of the same commodities with a better grasp on trends because of the designers they have on staff. Hudson Bay Company based out of Toronto founded in 1670, while Sak and Fifth was born in the year 1867. Both retailers have a strong hold on the upscale retail shopping market, without a doubt making a merger proposal in the cards. The acquisition of Saks’ by Hudson’s Bay Company (HBC) was an important acquisition for Hudson’s and Bay because it allows a them to branch more out into the United States more instead of focusing on just Canada. In Canada HBC runs and operates the largest department store with 90 locations. While in the United States HBC will oversee Saks’ Fifth Avenue one of the largest premium shopping store. Not only that HBC also owns Lord and Taylor another premium department store. …show more content…

The deal also includes taking over all debt, also taking all of their shares at ten cents per share. HBC paid for the acquisition in all cash allowing them to take over one hundred percent of the company. For Saks’ a smaller company with a lot of value had a couple questions they needed to ask themselves before accepting or declining the offer. Do we want to handover the company just yet? Is the company value 2.9 billion dollars or is more? The shareholders and executives must have believed that the answer to both those questions were yes hence why the merger went

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