Saks Incorporated to Hudson Bay Company (HBC)

Deal Information

Target

Saks Incorporated

Acquiror

Hudson Bay Company (HBC)

Sector

Target Type

Public

Acquiror Type

Strategic

Advisors

Goldman Sachs

Enterprise Value

$2.9B

EV / LTM Sales

0.9x

EV / LTM EBITDA

10.9x

EV / Fwd EBITDA

Comparable transactions cited by the advisor, excluding the subject transaction.

7 comps


Jun 2004	Marshall Field’s	May Department Stores	$3.2B	-	13.5x	-
Jul 2004	Mervyn’s Printed with the Buyer and Target columns swapped (Buyer: Mervyn’s; Target: Cerberus Capital). Goldman's 2015 Belk table prints the same deal as Ceberus Capital / Mervyn’s.	Cerberus Capital	$1.6B	-	6.2x	-
Nov 2004	Barneys New York	Jones Apparel Group	$400M	-	8.6x	-
Feb 2005	May Department Stores	Federated Department Stores	$17.0B	-	8.6x	-
May 2005	Neiman Marcus	TPG, Warburg Pincus	$5.2B	-	10.3x	-
Oct 2005	Northern Department Stores	Bon-Ton Stores	$1.1B	-	6.7x	-
Jan 2006	Hudson’s Bay	Maple Leaf Heritage Investments	$1.6B	-	8.1x	-
	Mean			-	8.9x	-
	Median			-	8.6x	-

Discount rate and terminal value assumptions the advisor selected for its discounted cash flow analysis.

WACC: 11.0% – 13.0%
Terminal method: Exit multiple
Terminal assumption: 7.0x – 8.0x (fiscal 2016 EBITDA)
Forecast basis: the Forecasts (management); stock-based compensation treated as cash
Forecast period: fiscal 2013 through 2016

Advisor	WACC	Terminal method	Terminal assumption	Forecast basis	Forecast period	Filing
Goldman Sachs	11.0% – 13.0%	Exit multiple	7.0x – 8.0x (fiscal 2016 EBITDA)	the Forecasts (management); stock-based compensation treated as cash	fiscal 2013 through 2016	Open