HBC - Hudson's Bay Company - Hudson's Bay Company To Acquire Saks Incorporated Transcript

    Ticker:HBC
    Company Name:Hudson's Bay Company
    Event Title:Hudson's Bay Company To Acquire Saks Incorporated Transcript
    Event Date:29-Jul-2013
    Event Time:08:30 AM ET

    Presentation



    Operator

    Good day ladies and gentlemen and welcome to the Hudson's Bay Company Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions]. As a reminder this call may be recorded. I will now introduce your host for today's conference Lucas Evans. You may begin.

    Lucas Evans

    Senior Vice President and Treasurer
    Thank you operator. Good morning and welcome everyone to the conference call to discuss the transactions between HBC and Saks Incorporated. My name is Lucas Evans and I'm the Senior Vice President, Treasurer and Head of Investor Relations for HBC. With me today are Richard Baker, HBC's Governor and CEO, Donald Watros our Chief Operating Officer and Mike Culhane, our Chief Financial Officer.

    Before we begin, allow me to provide the disclaimer regarding forward-looking statements.

    During this conference call, management of HBC may make certain statements or provide certain responses that may constitute forward-looking information including future-oriented financial information and financial outlooks, within the meaning of applicable securities laws related to among other things the completion of Saks acquisition , the financing of such acquisition , the anticipated benefits of such acquisition and HBC's objectives, strategies and business plans.

    All such forward-looking information are expressly qualified by an investors and analysts should refer to the full text of the company's Safe Harbor regarding forward-looking information which maybe found in the companies Investor Presentation which will be posted on the companies website.

    I would now like to pass the call over to Richard Baker.

    Richard Baker

    Governor, Chief Executive Officer
    Good morning everyone. Thank you for joining this call to discuss our exciting announcement. This morning we announced that HBC has entered into a definitive agreement to acquire Saks Incorporated for U.S. $16 per share in cash or a total of $2.9 billion including debt .

    The transaction creates a premier North American fashion retailer with three of the most iconic and heritage brands in North America , Hudson's Bay, Lord & Taylor and Saks 5th Avenue. Addressing a broad consumer spectrum and significantly enhancing our ability to create long-term value for our shareholders.

    Let me begin by telling you why I am so excited about this transaction. Saks is an iconic luxury retailer that provides first-class customer service and product offering through a dynamic full line and e-commerce channel.

    Saks also has a terrific outlet business that is profitable and growing fast. Many of its HBC have had a long relationship with Saks and believe the combined capabilities, customer offering and real estate portfolio of these two businesses strategically complement one another. Together, we will create one of North Americas premiere fashion retailer. The team in fact has taken a number of steps over the past few years to further enhance their already strong business including real-estate and merchandised optimization, strategic investment and omni-channel and increased focus on customer service.

    We believe that by working together we can continue to enhance and optimize the Saks business while preserving their iconic brand. Saks Fifth Avenue is a world-class luxury brand with potential for expansion into Canada.

    Hudson's Bay and Lord & Taylor has tremendous opportunities to enhance it's sales per square foot productivity and thus profitability. Saks or Fifth Avenue platform has significant opportunities to roll out new stores and will also serve more profitable channel to clear luxury in mid-tier merchandise will operate separately under the HBC umbrella including its own merchandising, marketing and store operations.


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