Hudson’s Bay Agrees To Amended Take-Private Deal

Hudson’s Bay Company, the Canadian parent of Saks and Hudson Bay, agreed to an amended deal to be taken private for C$11 per share. The offer comes from an investor group led by the retailer’s chairman, Richard Baker, an increase from the group’s previous offer of C$10.30 per share.

Supporting the agreement this time around is Catalyst Capital Group, Hudson’s Bay’s largest minority shareholder and an opponent to the previous deal. Hudson’s Bay plans to hold a special shareholder meeting in February to vote on the deal.

David Leith, chair of the special committee of the HBC Board of Directors, said, “We are pleased to have reached agreement with the Continuing Shareholders for a privatization transaction at a substantially increased price, which provides Minority Shareholders with compelling and immediate value and is supported by our largest Minority Shareholder. I would like to commend Catalyst on their constructive approach to getting a transaction agreed which we believe is in the best interests of the Company and the Minority Shareholders.”

In a separate statement, Gabriel de Alba, managing director and partner of Catalyst, said, “HBC is an iconic company and we are a substantial shareholder because we believe in its long-term potential. Given the desire by the Continuing Shareholders to take the company private through their consortium, we are pleased to support a transaction at $11 per share, which delivers significantly more value for all minority shareholders, well above the original proposal of $9.45 per share. We appreciate the constructive leadership of the Special Committee and their role in helping to realize this superior value for the minority shareholders.”

HBC intends to hold the special meeting of shareholders to approve the privatization transaction in February 2020.

HBC’s portfolio includes formats ranging from luxury to premium department stores to off price fashion shopping destinations, with nearly 250 stores and approximately 30,000 employees around the world. HBC’s leading businesses across North America include Saks Fifth Avenue, Hudson’s Bay, and Saks OFF 5TH. HBC also has significant investments in real estate joint ventures.