Hudson’s Bay Company has entered into a definitive agreement to acquire Gilt Groupe, an online shopping destination where nine million members gain access to inspiring fashion merchandise and experiences.
HBC will buy Gilt for US$250 million. The transaction is expected to contribute approximately US$500 million to HBC’s consolidated fiscal 2016 sales and the company plans to leverage Gilt’s mobile and personalization capabilities to accelerate the growth of its digital business across all of its existing banners.
“We plan to continue to foster Gilt’s culture of innovation, which has helped create a strong brand with a loyal and devoted millennial following,” Jerry Storch, the Chief Executive Officer of HBC, stated.
“Adding Gilt to our rapidly growing digital business is very exciting and we see tremendous potential to enhance our mobile and personalization strategies by leveraging Gilt’s advanced capabilities.”
“HBC understands our proposition and is committed to positioning our business for further success,” said Michelle Peluso, Chief Executive Officer of Gilt. “We are excited for our future and confident that we have the right team in place to continue to innovate the shopping experience and grow Gilt.”
HBC expects to fund the purchase price plus transaction costs using cash on hand. The transaction is expected to close on or about February 1.