Combines Hudson's Bay Company, Lord & Taylor, Fortunoff and Creative
Design Studios under The Hudson's Bay Trading Company
TORONTO and NEW YORK, July 16 /PRNewswire/ - NRDC Equity Partners and
True North Retail Investments, an affiliate of The InterTech Group, Inc.
and the owner of Hudson's Bay Company (Hbc), announced today the completion
of a transaction in which NRDC Equity Partners acquired Hbc and
consolidated its ownership of Lord & Taylor, Fortunoff, and Creative Design
Studios (CDS) under a holding company called the Hudson's Bay Trading
Company (HBTC). Combined, these companies comprise more than US$8 billion
in retail sales, 75,000 employees, and 55 million square feet of stores in
the United States and Canada. Hudson's Bay Company, established in 1670, is
North America's oldest continually operating company.
NRDC Equity Partners is investing US$500 million in new equity into the
combined company. Richard Baker will serve as CEO of the Hudson's Bay
Trading Company and will become the 38th Governor of the Hudson's Bay
Company. NRDC has been a minority owner in Hbc in partnership with the
Zucker Family and Baker has been a member of the board since 2006.
Richard Baker said, "By acquiring Hudson's Bay Company along with
previous acquisitions Lord & Taylor and Fortunoff, we will have an
unprecedented opportunity to recreate the retail landscape in North
America. Enormous potential exists by upgrading the offerings at both The
Bay and Zellers and by bringing Lord & Taylor, Fortunoff & CDS into the
mix," he added.
The strategy of the combined company is to create a greater focus on
The Bay department store business in Canada with an emphasis on the
customer by offering better brands and better service. In addition this
acquisition will allow Canadian consumers to benefit from the following
opportunities:
- Lord & Taylor, an upscale specialty retailer in the U.S., will be in
a position to launch 10-15 stores throughout Canada. Currently there
is a gap in the Canadian retail landscape between The Bay department
stores and Holt Renfrew. Lord & Taylor stores will be ideally
positioned to fill this consumer demand and will be located in prime
locations through existing Hbc real estate properties or within
existing flagship Bay stores.
- Zellers will see greater focus on branded apparel, improved customer
service and a future roll out of new 125,000 square foot prototype
stores.
- Fortunoff, a specialty jewelry and home furnishings store, will be in
a position to introduce Fortunoff Jewelry Stores and Fortunoff Home
Departments both within The Bay department stores as well as free-
standing retail operations.
- Creative Design Studios, the design and manufacturing division, will
expand its offerings and sell its branded collections throughout
North America and internationally. CDS brands include Peter Som's
eponymous collection as well as the Kate Hill and Context brands for
women, and the Black Brown 1826 men's brand.
- Fields will continue to focus on delivering value-priced merchandise
to Canadian consumers.
- Home Outfitters, Canada's fast growing home specialty store, will
continue to offer customers unbeatable selection of brands and
service in kitchen, bath and bed home furnishings.
Robert Johnston, President and CEO of Hbc and Executive Vice President
and Chief Strategy Officer, The InterTech Group stated, "This transaction
is a true win for all parties involved. The InterTech Group receives an
excellent return on its investment, NRDC acquires an outstanding retailer
with tremendous potential and the ability to leverage its brands and other
properties into Canada, and Hbc employees will have the opportunity to
build a dynamic new company."
NRDC Equity Partners was founded by Bill Mack, Lee Neibart, and Robert
and Richard Baker.
Robert Baker said, "The combined companies own a portfolio of trophy
real estate assets that create spectacular opportunity for development
around the existing retail operation."
NRDC Equity Partners also announced the following executive
appointments: Francis Casale will serve as Chief Financial Officer of HBTC;
Donald Watros will serve as Chief Administration Officer of HBTC; and Brian
Pall will serve as President of the HBTC Property Company.
NRDC Equity Partners was represented by Paul, Weiss, Rifkind, Wharton
and Garrison, LLP as US legal counsel and Stikeman Elliott, LLP for
Canadian counsel. Financo was the advisor for capital markets.
About Hudson's Bay Company:
Hbc is Canada's largest diversified general merchandise retailer,
operating in department store (the Bay), mass merchandise (Zellers),
specialty (Home Outfitters) and discount (Fields) formats. With a strong
Canadian-based management team, more than 580 retail outlets and nearly
60,000 associates across Canada, Hbc provides Canadians with stylish,
quality merchandise at great value, through retail banners focused on
exceptional customer service.
About Lord & Taylor:
Lord & Taylor is an upscale specialty department store with 47 stores
in 9 states and the District of Columbia. Lord & Taylor has built a
reputation for attentive customer service and high quality merchandise
focused on apparel and accessories for women, men, and children. Founded in
1826, Lord & Taylor is one of America's oldest retailers with a legendary
Fifth Avenue flagship. Jane Elfers serves as CEO of Lord & Taylor.
About Fortunoff:
Founded in 1922, Fortunoff currently has 23 retail stores specializing
in fine jewelry and home furnishings in the New York tri-state area, as
well as the Fortunoff.com website, which offers over 25,000 items to choose
from. Its unparalleled selection and remarkable prices have established
Fortunoff as a trusted name in the retail industry. Charles Chinni serves
as CEO of Fortunoff.
About Creative Design Studios:
Creative Design Studios was formed in October of 2007 as a stand-alone
company with a mission to develop and manufacture designer-driven brands
for regional department stores and to invest in great American design
talent. CDS is the parent company of Peter Som, and brands including Kate
Hill, Context, and Black Brown 1826. Susan Davidson serves as CEO of
Creative Design Studios.
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SOURCE Hbc
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CONTACT:
In Canada: Freda Colbourne, Edelman, (416)
979-1120, ext 262, (416) 560-7794 (mobile),
Freda.colbourne@edelman.com; Hillary Marshall, Hbc, (416)
861-6315 (direct), (416) 705-7302 (mobile),
hillary.marshall@hbc.com; In United States: Lori Rhodes, Lividini
Weisenfeld Partners (LWP), (646) 443-2061 (direct), (917)
596-9131 (mobile), lrhodes@lwpco.com
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