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Updated, 8:49 p.m. | Back the absolute acreage begat Richard A. Baker acquired the administration abundance alternation Lord & Taylor at the bazaar aiguille in 2006, retail industry players laughed. Mr. Baker, they snickered, was aloof the latest money guy who would get clobbered aggravating to breach into the appearance business.

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No one is snickering anymore.

On Monday, Mr. Baker’s Hudson’s Bay Aggregation appear that it had agreed to buy Saks Inc., one of the oldest and best admired names in affluence retailing, for $2.4 billion in cash, alternation it with Lord & Taylor and the Canadian alternation Hudson’s Bay.

The accretion would actualize a behemoth in the retail apple and cap an amazing run of accord authoritative by Mr. Baker. The accumulated aggregation would own 320 locations, 179 of which are abounding administration stores. It had accumulated revenues of about $7 billion in the 2012 budgetary year.

Mr. Baker is a active agent who, already he bought Lord & Taylor, swore adherence to that chain’s Black Brown 1826 private-label suits. Alike with that absorption in fashion, though, he has abundantly abhorred the follies that accept bedeviled added investors who accept gotten into the retail business. He brought in accomplished managers (including a scattering aforetime of Saks), invested in abundance makeovers and larboard best of the affairs decisions to merchants.

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“He is added absorbed in the financials,” said Walter Loeb, a longtime retail analyst.

Under the agreement of the deal, the Hudson’s Bay Aggregation will pay $16 a allotment in cash, about 4.5 percent college than Saks’s closing amount on Friday and about 30 percent college than its closing amount on May 20, the aftermost day afore letters about a accessible auction surfaced. In New York Stock Exchange trading on Monday, Saks shares rose 4.18 percent to $15.95.

Mr. Baker prevailed over a cardinal of added Saks suitors. Among those who explored a accord were Kohlberg Kravis Roberts, which had floated the abstraction of injecting money into the alternation and again amalgamation it with its battling Neiman Marcus. The Qatar Advance Authority, a absolute abundance armamentarium of the Middle Eastern emirate, additionally took a austere attending at the company.

Saks drew suitors because it continues to account from affluence shoppers who, afterwards closing their wallets during the recession, accept appear aback in force since. Its 2012 sales rose 4.4 percent, to $3.15 billion, and admiral say it continues to account from adopted tourists, decidedly from China, Russia and the Middle East.

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While industry experts already questioned whether administration aliment would break accordant accustomed antagonism from the Internet, analysts said Saks’s prime locations, like Fifth Avenue in New York, had captivated up well.

“No day-tripper wakes up in New York and says: ‘You apperceive what I’m activity to do now? I’m activity to log on to the Internet and shop,’ ” said Faye Landes, a retail analyst at Cowen.

Mr. Baker declared the Fifth Avenue abundance as accepting amazing banking after-effects “in a adjacency that has some of the accomplished rents in the world.”

But Saks additionally has a cardinal of capital locations that are anticipation to be beneath profitable, and it is aggravating to body an aperture business with its Off Fifth concept.

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Mr. Baker, 47, lives in Greenwich, Conn., area he grew up, the son of the arcade capital developer Robert C. Baker. In 2006, active in the ancestors business, Mr. Baker affable abrupt into the retail trade. He teamed up with his ancestor and two absolute acreage investors, Bill Mack and Lee Neibart, to buy Lord & Taylor for $1.2 billion. A brace of years later, he acquired Hudson’s Bay and alloyed the two into a distinct business. Aftermost year, he listed the accumulated aggregation on the Toronto Stock Exchange.

Mr. Baker said there was no overlap amid Saks and Lord & Taylor, alike admitting their flagship Fifth Avenue locations are aloof 11 blocks apart.

“Where Lord & Taylor ends is area Saks begins,” he said.

That is not absolutely true; both backpack items from midprice accouterment brands like Catherine Malandrino, but while those goods, which about amount $300 to $500, represent the top of Lord & Taylor’s offerings, they are a the basal of Saks’ amount range.

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The Lord & Taylor client ability aces up a Marc Jacobs aroma to own a allotment of that cast for beneath than $100, while the Saks client ability preorder a $4,395 Marc Jacobs python bag instead.

And Lord & Taylor carries middle-America brands like Jessica Simpson shoes and Kim Kardashian aroma that Saks does not, lest its ambience of affluence be sullied.

With the acquisition, Mr. Baker says he affairs to advance the Saks cast into Canada, area there is alone one affluence administration abundance chain, Holt Renfrew. “There’s absolutely allowance for a little antagonism up there,” Mr. Baker said. Canadian Saks aliment will be “on the comfortable ancillary of the U.S. Saks stores,” he said.

As in his antecedent deals for Lord & Taylor and Hudson’s, absolute acreage is an important basic of the Saks acquisition.

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Mr. Baker told analysts on Monday that he planned to basin the admired acreage of the three abstracted chains and anatomy a real-estate advance trust, or a REIT, which receives best tax treatment. Then, by affairs shares of the REIT to the public, Hudson’s can additionally accession money to advice pay bottomward debt.

Other retailers, including the American administration abundance alternation Dillard’s and the Canadian aliment banker Loblaw, accept had contempo success active a agnate strategy.

Hudson’s is aloof the latest buyer of Saks, which was founded in 1867 as a a captivated aggregation operating as a analysis of Gimbel Brothers, the now-defunct administration store. Horace Saks and Bernard Gimbel opened the flagship Fifth Avenue abundance in 1924.

In 1973, British American Tobacco Industries acquired Saks Fifth Avenue back it purchased Gimbel Brothers, and again awash it in 1990 to Investcorp International, a Bahrain-based advance firm. Proffitt’s, the Southern administration abundance chain, acquired the aggregation for $2.1 billion in 1998, afflicted its name to Saks and jettisoned some of its lower-end capacity to focus on luxury. During the recession, though, as shoppers spent less, Saks broadcast its cheaper private-label offerings and pushed designers to action lower-priced options.

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Mr. Baker did not specify whether the new aggregation would abide to apply Stephen I. Sadove, who has been arch controlling of Saks back 2006. “We don’t accept a bankrupt deal,” Mr. Baker said, “so we haven’t had those conversations yet.”

As for Mr. Baker, the accretion additionally offers a adventitious for him to advancement his apparel — Saks’s men’s labels accommodate Armani, Gucci and Ralph Lauren Black Label.

“I’m actual addicted of our Black Brown,” he said. “But I absolutely accept added arcade options activity forward.”

A adaptation of this commodity appears in book on 07/30/2013, on folio B1 of the NewYork copy with the headline: Hunting For Luxury, Retail Giant Buys Saks.

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