BERLIN: Hudson’s Bay Co. is looking at buying German department store chain Kaufhof for potentially as much as $2.6-billion (U.S.) – more than HBC paid for Saks Inc. in 2013.
It is in talks with German retailer Metro AG, which owns Kaufhof, although discussions are at an early stage, an industry source said.
Officials at HBC declined to comment and those at Metro could not be reached about a possible Kaufhof deal, which was first reported by industry publication Women’s Wear Daily.
HBC, which operates the Hudson’s Bay department stores in Canada and bought the upscale Saks Fifth Avenue chain for $2.4-billion in late 2013, is eyeing more acquisitions as it looks to expand beyond North America.
Richard Baker, governor and executive chairman of HBC, which also owns the U.S. Lord & Taylor chain, discussed the company’s appetite to buy rivals earlier this month in a conference call.
Our criteria is to acquire companies that provide us with synergies – so cost savings,” Mr. Baker said. “Two, provide us an opportunity to operate the business maybe better than the existing management operated it. And thirdly is to have some sort of a real estate component …
We have the capacity and the financial capability to do a transaction at this time but we’re very picky and very careful and relatively slow and conservative on acquisitions.”
Mr. Baker, a U.S. real estate magnate, said his focus is to acquire retail in the luxury or “better, mid-tier” space and in the off-price discount sector (such as Saks Off 5th). “The quality of a brand is very meaningful to us.”
