Canadian department-store company Hudson's Bay, owner of Hudson’s Bay stores as well as American retailers Saks Fifth Avenue and Lord & Taylor, has agreed to buy Germany’s largest department store chain, Kaufhof, for €2.82 billion (euros) or $3.2 billion.
The purchase from German conglomerate Metro Group also includes the Belgian department store chain Galeria Inno.
CEO Jerry Storch said the purchase is key to Hudson’s Bay’s goal of become a “premier global retailer.”
Hudson’s Bay has been getting a lot of attention recently for its real estate focus, but Storch’s statements about this long-rumored purchase were all about expanding the Canadian company’s global retail ambitions. The company aims to leverage Kaufhof’s e-commerce strength in Europe and to bring its American Saks stores to the continent.
"This is a strong foundation to explore additional opportunities for growth throughout the continent," Storch said.