Dive Summary:
- Saks Inc. has agreed to terms with Hudson’s Bay Co. on an acquisition worth a reported $2.4 billion in cash, based on reports from The Wall Street Journal.
- Saks currently operates 42 Saks locations, along with 66 outlet stores throughout the US. The acquisition could set the stage for a potential Saks expansion into Canada.
- Hudson’s Bay will pay $16 per share in cash to Saks Inc, an increase of nearly 4.5% over the company’s Friday closing price of $15.31 per share.
From the article:
Sales at Saks have yet to fully recover from the deep swoon they took during the recession, and profits have been uneven. Saks posted net income of $63 million in the year that ended Feb. 2 on $3.15 billion in sales. Its sales increased from a year earlier but its earnings declined.
