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Hudson's Bay agrees to acquire Kaufhof for EUR2.8bn

RBR Staff Writer Published 16 June 2015

Canadian retailer Hudson's Bay has agreed to acquire German department store chain Kaufhof from Metro for around €2.8bn.


Galeria Kaufhof owns and operates department stores in Germany and Belgium. It offers fashion and lifestyle products.

Kaufhof employs 21,115 people across its 135 locations. It generates around €3.1bn in annual sales.

Upon acquiring Kaufhof, Hudson's Bay will have 464 locations and eight banners across the world.

The company will have 44% of sales generated in the US, 31% in Germany, 23% in Canada and 2% in Belgium.

As per the agreed terms, Hudson's Bay will continue to operate Kaufhof, Inno and Sportarena under their current brand banners.

Hudson's Bay CEO Jerry Storch said, "This transaction is a significant step forward in our plans to become a premier global retailer.

"We look forward to working with GALERIA Kaufhof's management team as we bring together two geographically complementary businesses, diversifying HBC's revenue base with leading banners in Canada, the United States, Germany and Belgium. This is a strong foundation to explore additional opportunities for growth throughout the Continent."

The sale of Kaufhof forms a part of Metro's strategy to focus on developing its cash-and-carry and consumer electronics businesses, as well as hypermarket chain Real.

This will allow Metro to achieve a positive cash inflow of around €1.6bn and significantly reduce its rating-relevant net debt by around €2.7bn.

Image: Galeria Kaufhof store. Photo: courtesy of Raimond Spekking.