American Department store retailers Hudson's Bay Company has announced that it has entered into a definitive agreement to acquire Gilt Groupe Holdings, Inc. for $250 million in cash, subject to customary requirements.
This transaction reflects HBC's ongoing focus on advancing its all-channel model while continuing to grow its successful off-price business through the integration of Gilt with Saks Off 5th locations.American Department store retailers Hudson's Bay Company has announced that it has entered into a definitive agreement to acquire Gilt Groupe Holdings#
Gilt is a leading and innovative online shopping destination, offering its members special access to inspiring fashion merchandise and experiences. With over 9 million members and approximately 50 per cent of orders generated on its mobile platform, Gilt has cultivated a loyal and devoted millennial following.
“With this transaction we are further accelerating both HBC's all-channel offering and Gilt's growth. We plan to continue to foster Gilt's culture of innovation, which has helped create a strong brand with a loyal and devoted millennial following. Adding Gilt to our rapidly growing digital business is very exciting and we see tremendous potential to enhance our mobile and personalization strategies by leveraging Gilt's advanced capabilities. We look forward to welcoming the Gilt team to HBC and to benefitting from the complementary nature of our businesses,” said Jerry Storch, CEO of HBC.
“HBC and Saks Off 5th are the ideal home for Gilt and our members,” said Michelle Peluso, CEO of Gilt. “HBC understands our proposition and is committed to positioning our business for further success. Our members will find having a brick and mortar presence valuable and a positive addition to the Gilt experience. We are excited for our future and confident that we have the right team in place to continue to innovate the shopping experience and grow Gilt.”
The transaction is expected to contribute approximately $500 million to HBC's consolidated fiscal 2016 sales and be complementary to HBC's existing business. Additionally, HBC plans to leverage Gilt's mobile and personalization capabilities to accelerate the growth of HBC's digital business across all of its existing banners.
HBC also expects to benefit from the integration of Gilt with Saks Off 5th locations, including the introduction of a new return programme at Saks Off 5th locations for Gilt merchandise following the closing of the acquisition. HBC also expects to create Gilt concept shops at Saks Off 5th stores, developing a true all-channel model for Gilt.
HBC expects to fund the $250 million purchase price plus transaction costs using cash on hand. The transaction is expected to close on or about February 1, 2016, subject to customary closing conditions and Gilt shareholder approval. (SH)
Fibre2Fashion News Desk - India
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