HBC rejects Signa’s $3.7b offer, names new CEO
Hudson’s Bay Co. has rejected the bid by the European retailer Signa Holding GmbH.
HBC says Signa’s proposal was not in the best interest of its shareholders. The bid “significantly undervalues our German business and related real estate assets and is not supported by sufficient certainty of financing to warrant further consideration at this time,” said David Leith, lead independent director of Hudson’s Bay’s board.
In November 2017 Hudson’s Bay Co. received an unsolicited offer from Signa for its German department store chain Kaufhof and other real estate assets.
HBC acquired Kaufhof in 2015 as part of a $3.2 billion deal that included Belgium retailer Galeria Inno.
The potential deal would have combined Germany’s two largest department store operators: Kaufhof and Signa’s Karstadt. Signa acquired the troubled Karstadt in 2014.
HBC, like other department stores, has been struggling with consumers increasingly turning to online shopping. Last summer, the company announced it was cutting 2,000 jobs. And recently, it appointed Helena Foulkes as chief executive officer. Foulkes was most recently executive vice president at CVS Health and president of CVS Pharmacy, a position she held since 2014.
She will be responsible for HBC’s global strategy and operations for all banners, overseeing more than 66,000 associates worldwide across more than 480 stores, e-commerce platforms, supply chain, logistics and technology.
