Hudson’s Bay Co. has modeled a deal with an Austrian retail heavyweight that will see the two firms forge a joint venture to operate existing businesses in Germany, Belgium and absent in Europe.
The Canadian retailer announced the agreement in a statement early Tuesday, think it’s formed a “strategic partnership for its European retail and real estate assets” with Austria-based Signa Retail Holdings.
The engage in has been in the works for some time, with HBC confirming in July that it was in talks with Signa.
The European stiff had made an unsolicited offer late last year to buy HBC’s German runnings, but withdrew it earlier this year after it was rejected by the HBC board because it undervalued the affair.
Deal expected to close within 90 days
Signa owns Kardstadt, a area store selling everything from apparel to household appliances, while HBC runs segment stores overseas called Galeria Kaufhof and Galeria INNO.
The new make bold will include those assets, as well as the European arm of HBC’s Saks Off Fifth stamp, Hudson’s Bay in the Netherlands, Kardstadt sports stores and both companies’ commons and catering businesses.
“This transaction builds on our recent efforts to streamline HBC and provides a unblock path forward to improve our European operations,” HBC chief executive Helena Foulkes declared in a statement.
“The creation of a stronger operator in Europe allows us to focus our rclame on our North American banners, helping to ensure we are making the right vital decisions to drive performance and profitability within those businesses.”
The buy is subject to regulator approval in Europe, and is expected to close within the next 90 days.