Saks owner reportedly to acquire Neiman Marcus in high-end retail deal
In a move that will further consolidate the luxury retail market, the parent company of Saks Fifth Avenue has agreed to acquire Neiman Marcus in a $2.65 billion deal, creating the ultimate upscale department store group, two people close to the negotiations said Wednesday.
The deal, which has been rumored since Neiman Marcus filed for bankruptcy protection amid the pandemic, comes just over four years after Saks bought the license to the Barney’s name following that group’s bankruptcy. It also follows a wave of luxury e-tail failures, including those of FarFetch and Matches.com. Saks is owned by HBC, a retail conglomerate that bought the American chain in 2013 — the year after HBC also acquired Lord & Taylor.
The Neiman Marcus acquisition will make Saks Global, as the new group will be called, the dominant player in its market, with a total of 75 stores (including two Bergdorf Goodman stores) and 100 off-price stores. The new group’s only real rivals in the United States are Macy’s, which also includes Bloomingdale’s, and Nordstrom. It will be run by Marc Metrick, the current CEO of Saks and Saks.com, one of the sources said.
As part of the deal, Amazon will take a minority stake in Saks Global, the people said. HBC, which also owns Canadian department store chain Hudson’s Bay, is financing the acquisition with $2 billion raised from existing investors. Affiliates of investment firm Apollo Global Management are providing $1.5 billion in debt.
The Wall Street Journal previously reported on the deal.
This is a developing story. Check back for updates.
