It's a deal that may never come to pass, but there are plenty of people who seem to think that Saks could do a lot worse than being acquired by Hudson's Bay Co. (HBC), owner of the iconic Canadian department store by the same name and Lord & Taylor here in the U.S.
If a deal were completed, it would give the American chain several potential entryways into Canada including opening Saks shops inside HBC stores, converting some HBC locations to Saks Fifth Avenue flagships or its Off Fifth discount outlets. As with all deals of this type, synergies and costs savings are being run out as additional reasons for HBC to acquire Saks.
Reports on The Globe and Mail website as well as WWD.com, which cite unnamed sources with knowledge of the dealings, suggest Saks' asking price may be too rich for HBC management's blood even though company chairman and CEO Richard Baker has had a long interest in the department store chain.
The WWD piece points to a top management reorganization last week at HBC as another sign of its interest in Saks. Bonnie Brooks, president of HBC, was named its vice chair, while Liz Rodbell, executive vice president, chief merchant for HBC, was promoted to president.
"He's (Mr. Baker) close to a Saks deal so he couldn't risk losing Brooks and had to promote Liz to stabilize the management," an unnamed source told WWD.
- Hudson's Bay eyes buying Saks -The Globe and Mail(tiered sub.)
- Owner of Hudson's Bay Explores a Deal to Buy Saks - The New York Times (tiered sub.)
- Saks Draws Interest From Hudson's Bay - The Wall Street Journal(sub. required)
- Hudson's Bay Co. Zeroes In on Saks Inc. - WWD.com (sub. required)
- HBC Announces Changes in Executive Structure - Hudson's Bay Company/Globe Newswire/NASDAQ