HBC has bought the company for $16 per share, valuing it at $2.9bn. The takeover has already been approved by the boards of the two companies and is expected to close before the end of the year.
Under the deal, Saks will have a 40-day go-shop period to solicit alternative offers.
The enlarged business will operate 320 stores, generating an EBITDA of $587m ($571m) on revenues of C$7.2bn before any synergies.
Earlier this year it was reported that KKR was considering making a bid for Saks to merge it with US retail group Neiman Marcus to create America’s second largest department store group with over $7bn in sales.
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