NRDC Buys Hudson’s Bay Co.

TORONTO – NRDC Equity Partners, the owner of Lord & Taylor, has acquired Canadian department store operator the Hudson’s Bay Co. for an undisclosed amount. NRDC is consolidating its retail holdings—Lord & Taylor, Fortunoff, and Creative Design Studios—into one holding company to be called Hudson’s Bay Trading Company. The combined company will have sales of more than $8 billion a year.

Hudson’s Bay Co., founded in 1670, is North America’s oldest continually operating company. It currently operates The Bay, Zellers and Home Outfitters, among other stores in Canada. NRDC plans to change the name of as many as 15 Bay stores to Lord & Taylor. NRDC CEO Richard Baker will invest $500 million in Hudson’s Bay. He has been on the company’s board since 2006.

“By acquiring Hudson’s Bay Company along with previous acquisitions Lord & Taylor and Fortunoff, we will have an unprecedented opportunity to recreate the retail landscape in North America. Enormous potential exists by upgrading the offerings at both The Bay and Zellers and by bringing Lord & Taylor, Fortunoff & CDS into the mix,” Baker said in a statement.

Baker added that bringing the Lord & Taylor stores to Canada will fill a need and bridge the gap between The Bay and Holt Renfrew.