Saks’ Parent to Buy Neiman Marcus for $2.65B

Saks Fifth Avenue parent company HBC (Toronto) has entered a definitive agreement to acquire Neiman Marcus Group (Dallas), parent company of Neiman Marcus and Bergdorf Goodman, for $2.65 billion. If the deal receives the needed regulatory approvals, HBC said it will establish Saks Global, a combination of luxury retail and real estate assets including Saks Fifth Avenue, Saks Off 5th, Neiman Marcus and Bergdorf Goodman, each of which will continue operations under their respective brands.

“For years, many in the industry have anticipated this transaction and the benefits it would drive for customers, partners and employees,” said Richard Baker, HBC Executive Chairman and CEO. “This is an exciting time in luxury retail, with technological advancements creating new opportunities to redefine the customer experience, and we look forward to unlocking significant value for our customers, brand partners and employees.”

Said NMG CEO Geoffroy van Raemdonck, “We believe this is a proactive choice in an evolving retail landscape that will create value for our customers and brand partners. Saks Fifth Avenue shares our passion for connecting customers with the world’s best luxury fashion. With our complementary capabilities and a new long-term capital structure, the combined group will position our iconic Neiman Marcus and Bergdorf Goodman brands for continued success.”

The parties noted that online retail giant Amazon (Seattle) “will be an investor in and work with Saks Global to innovate on behalf of customers and brands partners following the close of the transaction.” The amount of Amazon’s stake was not disclosed.