Saks Fifth Avenue parent to buy Neiman Marcus Group for $2.65 billion
Saks Fifth Avenue parent company HBC announced Thursday a $2.65 billion deal to acquire Neiman Marcus Group, the parent company of Neiman Marcus and Bergdorf Goodman.
HBC said that after the deal goes through it will launch Saks Global, which will include Saks Fifth Avenue, Saks OFF 5TH, Neiman Marcus and Bergdorf Goodman. Each of these legacy retailers will continue to operate under their respective brands.
“We're thrilled to take this step in bringing together these iconic luxury names,” said Richard Baker, executive chair and CEO of HBC. “For years, many in the industry have anticipated this transaction and the benefits it would drive for customers, partners and employees.”
Neiman Marcus Group CEO Geoffroy van Raemdonck described the deal as “a testament to our team's unwavering commitment to building rewarding customer relationships, driven by our differentiated business model.”
“We believe this is a proactive choice in an evolving retail landscape that will create value for our customers and brand partners,” he added.
The deal takes place against the backdrop of a turbulent time for storied department stores. In February, Macy’s said it would close 150 “underproductive locations” over the next three years amid a dip in sales to focus on expanding its luxury brand offerings.
“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,” Baker said.
Marc Metrick, CEO of Saks, the online counterpart to Saks Fifth Avenue, will become CEO of the yet-established Saks Global, HBC said.
“Saks has remained steadfast in our commitment to be at the forefront of luxury fashion, meeting customers not just where they are, but where they are going,” Metrick said.
“Together, with our ongoing focus on innovation, we are primed to drive growth for our brand partners and create career development opportunities for the incredible talent across Saks Global.”