Hudson’s Bay Company, which owns Saks, has agreed a deal to buy up struggling German department store chain Galeria Kaufhof.
The group, which bought the American luxury department store in 2013, is expected to pay €2.8bn (£2.03bn) for the 136-year-old Kaufhof chain, which includes 120 stores across Germany. The deal is thought to include some debt, despite its biggest domestic competitor, Karstadt, going under in 2009.
It has been rumoured that HBC is more interested in the store estate which includes 59 in “exceptional” prime city-center locations, than in the brand name itself.
Mr. Richard Baker, governor and executive chairman of HBC, said: "These are exciting transactions that demonstrate our proven growth formula in action: improving solid retail operations, unlocking the value of real estate and growing through acquisitions. This is the right investment at the right time. We have been carefully surveying the European retail landscape for many years for a potential expansion opportunity and have watched Kaufhof build on its exceptional real estate to become the #1 department store in Germany. We are excited to work with the existing Kaufhof management team, bring our expertise to bear in the German retail sector and welcome Kaufhof to our portfolio of dynamic brands."
