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Hudson's Bay to buy Galeria Kaufhof from Metro for 2.825 billion euros

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Staff writer ▼ | June 15, 2015
Hudson's Bay Company (HBC) and Metro Group have entered into a definitive agreement under which HBC will acquire Metro's department store group Galeria Kaufhof and its Belgian subsidiary Inno for a transaction value of 2.825 billion euros.
Possible acquisition   Acquisition
This isincluding the assumption of certain liabilities. The transaction has been approved by the Board of Directors of HBC as well as the Supervisory Board of Metro AG. It is expected to close by the end of the third quarter of 2015.

As a result of the acquisition, HBC will have: 464 Locations Worldwide, 8 Leading Banners; C$13 (9 euros) Billion in Revenue; and Pro Forma Sales by Market: 44% US; 31% Germany 23% Canada, 2% Belgium.

The transaction is a further extension of HBC's proven strategy of growing through mergers and acquisitions, with Galeria Kaufhof further diversifying HBC's portfolio and positioning the Company as a premier international retailer.

Specifically, HBC is taking over 103 Galeria Kaufhof stores in Germany from Metro Group, including 59 properties in prime inner-city locations that are part of the Galeria Real Estate portfolio.

As part of the transaction, HBC is also acquiring 16 Sportarena stores, 16 GALERIA Inno department stores located in Belgium, as well as various logistics centres, warehouses and other properties, and the long-standing GALERIA Kaufhof head office in Cologne.