Luxury retailer Saks Inc. is going Canuck, selling itself for $16 a share to Hudson’s Bay, owner of department store chain Lord & Taylor.
The deal represents a 30% premium to Saks’ stock price on May 20, just before speculation emerged about a possible acquisition. The price is 4.5% above Saks’ closing price Friday.
The companies pegged the total value of the deal at $2.9 billion, including debt.
Together, Saks and Hudson’s Bay will create a business that spans luxury, mid-tier and outlet retail categories, with 320 stores total. The Canadian company said it expects roughly $97.3 million in cost savings over three years.