Associated Press Release
NEW YORK (AP) -- Luxury retailer Saks is being purchased by the parent of Lord & Taylor for approximately $2.4 billion.
The news comes a little over a month after reports surfaced that Hudson's Bay Co. was interested in buying Saks Inc.
Hudson's Bay, which also runs some Canadian department stores, will pay $16 per share for Saks. This is a 5 percent premium to the company's Friday closing price of $15.31.
The companies put the deal's total value at about $2.9 billion including debt.
Saks' stock jumped nearly 4 percent in Monday premarket trading. Shares are up 46 percent for the year to date.
The buyout is targeted to close before year's end. It still needs approval from Saks' shareholders.
The New York-based retailer has about 150.2 million outstanding shares, according to FactSet.