Hudson's Bay Company acquires German department store chain
The acquisition is expected to complete by the end of HBC’s third quarter.
Richard Baker, governor and executive chairman of HBC, said: "This is the right investment at the fright 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 No. 1 department store in Germany.”
Kaufhof’s store portfolio includes 103 Galeria Kaufhof stores and 16 Sportarena stores. It also operates Belgium's only department store with 16 Galeria INNO locations across the country.
In a statement, HBC also said a US joint venture set up previously with Simon Property will buy at least 40 of Kaufhof's owned or partially owned properties.
In the twelve months ended 31 March 2015, Kaufhof generated sales of €3.1 billion.
Kaufhof's management is expected to remain in place following the acquisition with the business overseen by Baker, HBC chief executive Jerry Storch and HBC president Donald Watros.
Storch said: "This acquisition is a significant step forward in our plans to become a premier international retailer. With Kaufhof, we will operate eight leading banners in Canada, the United States, Germany and Belgium. Expanding our footprint into Europe with Kaufhof also provides us with a strong foundation to explore to explore additional opportunities for growth throughout the continent."
In addition to Saks Fifth Avenue, HBC’s other retail chains include Hudson's Bay, Lord & Taylor and Home Outfitters.
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