Lord & Taylor owner buys Saks for about $2.4 billion

Exterior view of the 2011 Holiday Windows at Saks on November 23, 2011 in New York City.
Exterior view of the 2011 Holiday Windows at Saks on November 23, 2011 in New York City.Rob Kim / Getty Images Contributor

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By Staff reports

Lord & Taylor owner Hudson's Bay Co., is buying luxury retailer Saks for about $2.4 billion.

Hudson's Bay, which also runs some Canadian department stores, will pay $16 per share for Saks. This is a 5 percent premium to the company's Friday closing price of $15.31.

In announcing the deal Monday, the companies put the deal's total value at about $2.9 billion, including debt.

Saks' stock jumped nearly 4 percent Monday. For the latest stock price, click here.

The buyout is targeted to close before year's end. It still needs approval from Saks' shareholders. The New York-based retailer has about 150.2 million outstanding shares, according to FactSet.

The deal brings together three of the retail industry's biggest names—Lord & Taylor, Saks Fifth Avenue and Hudson's Bay, covering luxury, mid-tier and outlet retail sectors.

The combined company will operate 320 stores, including 179 full-line department stores, 72 outlet stores and 69 home stores in prime retail locations throughout the U.S. and Canada, along with three e-commerce sites.

The Associated Press contributed to this report.

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