Richard Baker’s Deal­mak­ing

How the ex­ec­u­tive built his re­tail em­pire at Hudson’s Bay.

WWD Digital Daily - - News - BY EVAN CLARK

Richard Baker is a real es­tate ex­pert who caught the re­tail bug, but it has been his deal­mak­ing that has shaped Hudson’s Bay Co.

Dur­ing his time lead­ing first NRDC Eq­uity Part­ners and then HBC, Baker has bought and sold steadily, build­ing an em­pire with sales of over 14 bil­lion Cana­dian dol­lars.

But with Gilt com­ing and go­ing in just two years, the Lord & Tay­lor flag­ship des­tined for de­par­ture and the Ger­man op­er­a­tions said to be in play, it seems to be a time of re­fo­cus­ing.

Here, a look at Baker’s wheel­ing and dealing, drawn from WWD’s ar­chives, com­pany re­ports and S&P Cap­i­tal IQ.

2006

► JUNE

NRDC Eq­uity Part­ners agrees to buy Lord & Tay­lor from Fed­er­ated De­part­ment stores for $1.2 bil­lion.

2008

► JULY

NRDC buys an 80 per­cent stake in Hudson’s Bay Co. from Maple Leaf Her­itage In­vest­ments; Richard Baker named chief ex­ec­u­tive of­fi­cer and gov­er­nor.

HBC sells De­signer Depo to Les Ailes de la Mode In­cor­porees.

2011

► JAN­UARY

HBC agrees to sell 220 of its Zellers stores to Tar­get Corp. for 1.8 bil­lion Cana­dian dol­lars (but the mass mer­chant aban­doned its Cana­dian ex­pe­di­tion in 2015).

2012

► MARCH

HBC sells 10 doors from its clos­ing Fields ban­ner to The Bar­gain! Shop Hold­ings Inc.

► NOVEM­BER

HBC raises 365 mil­lion Cana­dian dol­lars as it be­gins trad­ing on the Toronto Stock Ex­change.

Total rev­enues: 4.1 bil­lion Cana­dian dol­lars

2013

► JULY

HBC agrees to buy Saks Inc. in $2.9 bil­lion deal, in­clud­ing debt.

Total rev­enues: 5.2 bil­lion Cana­dian dol­lars

2014

► JAN­UARY

On­trea Inc. agrees to buy Toronto flag­ship re­tail com­plex and the for­mer Simp­son Tower from HBC for 650 mil­lion Cana­dian dol­lars.

Total rev­enues: 8.2 bil­lion Cana­dian dol­lars

2015

► FE­BRU­ARY

HBC sets up real es­tate joint ven­tures with Si­mon Prop­erty Group in the U.S. and RioCan Real Es­tate In­vest­ment Trust in Canada.

► APRIL

HBC raises 363.5 mil­lion Cana­dian dol­lars in se­condary of­fer­ing.

► JUNE

HBC agrees to ac­quire Ga­le­ria Kaufhof from Metro for 2.8 bil­lion eu­ros, in­clud­ing debt.

► NOVEM­BER

HBC sells 25 per­cent stake in HBS Global Prop­er­ties Joint Ven­ture to Ivan­hoé Cam­bridge Inc., Madi­son In­ter­na­tional Re­alty and a large U.S. pen­sion for $533 mil­lion.

Total rev­enues: 11.2 bil­lion Cana­dian dol­lars

2016

► JAN­UARY

HBC agrees to buy Gilt Groupe Inc. for $250 mil­lion.

► MARCH

HBC sells an­other 2 per­cent of prop­er­ties joint ven­ture to Madi­son In­ter­na­tional for $50 mil­lion and re­tains 61 per­cent of the ven­ture after Si­mon Prop­erty Group also con­tributed a $100 mil­lion com­mit­ment for ten­ant im­prove­ments.

Total rev­enues: 14.5 bil­lion Cana­dian dol­lars

2017

► OC­TO­BER

HBC agrees to sell Lord & Tay­lor Fifth Av­enue flag­ship to WeWork in $850 mil­lion deal.

► DE­CEM­BER

HBC re­ceives $500 mil­lion in­vest­ment from Rhône Cap­i­tal.

Total rev­enues: 14.3 bil­lion Cana­dian dol­lars

2018

► JUNE

HBC reaches deal to sell Gilt to Rue La La.

► JULY

Ru­mors per­co­late that HBC is close to of­fload­ing at least a part of its Ger­man op­er­a­tions.

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