New York City — Hudson's Bay Company, the Canadian retail conglomerate, has completed its acquisition of its affiliate, Lord & Taylor Holdings, LLC, the U.S. department store company.

Hudson's Bay Company will operate the two leading retail banners in North America, The Bay and Lord & Taylor. Prior to the transaction, Hudson's Bay Company and Lord & Taylor were side-by-side affiliate entities.

Richard Baker will remain governor and CEO of the newly restructured company, with Donald Watros continuing as chief operating officer. Bonnie Brooks, currently president and CEO of The Bay, will become president of the Hudson’s Bay Company.

"We are fortunate to have both Don Watros and Bonnie Brooks round out the leadership team of the Hudson's Bay Company,” Baker says. “Don's operational and financial expertise has been instrumental in contributing to both The Bay and Lord & Taylor’s year-over-year profitability despite the poor economic environment around the globe.”

Lord & Taylor and The Bay will maintain their distinct identities and nameplates while leveraging the merchandising strengths of the organizations to improve and accelerate their continued growth.

“We look forward to an even stronger 2012 with this new leadership structure in place,” Baker adds.

Brendan Hoffman, president and CEO of Lord & Taylor, will be leaving the company to pursue another opportunity.

As part of the transaction, Hudson's Bay invested $427 million in Lord & Taylor, which used the proceeds entirely to reduce corporate debt.

Hudson's Bay Company, founded in 1670, is North America’s longest continually operating company. With more than 600 retail outlets, the company comprises The Bay, a major department store; Zellers, a mass merchandise format; Home Outfitters, a kitchen, bed and bath specialty store; and value-priced Fields stores. The Hudson’s Bay Company’s U.S. banner operations include Lord & Taylor, an upscale specialty retailer with 46 stores across nine states. Two new stores are planned for spring 2012.