The owner of US retailer Lord & Taylor has bought Canadian department store chain Hudson's Bay Company in a deal that could recreate the retail landscape in North America.

Following the deal, NRDC Equity Partners has set up a holding company called the Hudson's Bay Trading Company (HBTC) to oversee its Lord & Taylor, Fortunoff and Creative Design Studios (CDS) businesses.

NRDC says it plans to invest US$500m in new equity into the combined company which generates more than $8bn in retail sales, and has 75,000 employees and 55m square feet of stores in the US and Canada.

NRDC co-founder Richard Baker said: "By acquiring Hudson's Bay Company along with previous acquisitions Lord & Taylor and Fortunoff, we will have an unprecedented opportunity to recreate the retail landscape in North America.

"Enormous potential exists by upgrading the offerings at both The Bay and Zellers and by bringing Lord & Taylor, Fortunoff & CDS into the mix."

NRDC went onto say that it plans to launch 10-15 Lord & Taylor stores throughout Canada.