Hudson’s Bay Company (HBC), parent company of Saks Fifth Avenue, has completed the acquisition of Neiman Marcus Group, a US-based department store chain, for a total enterprise value of $2.7bn.
This move comes following a definitive agreement signed between HBC and Neiman Marcus Group, in July this year.
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The deal merged the two companies in luxury retail sector, creating a new entity named Saks Global.
It brings together Neiman Marcus Group’s Neiman Marcus and Bergdorf Goodman brands and HBC’s Saks Fifth Avenue and Saks OFF 5TH luxury brands under Saks Global.
Each brand will continue to operate independently.
The consolidation of these luxury brands aims to better serve customers, employees, and brand partners, supported by a prime retail real estate portfolio in luxury locations.
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By GlobalDataThe acquisition has been financed through a mix of equity contributions from new investors, including Authentic Brands Group, Amazon, M Klein & Company, Salesforce, and others.
It also includes the issuance of $2.2bn of senior secured notes and an asset-based lending (ABL) revolving credit facility.
Existing investors, including Insight Partners, Rhône, Abrams Capital, and Abu Dhabi Investment Council, are retaining their stake in the new structure.
Saks Global will cater to the growing consumer demand for a personalised shopping experience, with enhanced opportunities for product discovery across all channels.
Marc Metrick will serve as Saks Global operating group CEO while Ian Putnam will take over the role of Saks Global properties and investments CEO, both reporting to executive chairman Richard Baker.
Baker said: “By uniting Neiman Marcus, Bergdorf Goodman, and Saks Fifth Avenue, we have created an unparalleled multi-brand luxury portfolio with tremendous growth potential. With data and innovation at our core and a portfolio of prime real estate, we aim to redefine the luxury shopping experience.”
To drive the growth of its luxury brands, Saks Global has created the role of president and chief commercial officer, promoting Emily Essner, former chief marketing officer at Saks, to oversee the company’s go-to-market strategy.
Bergdorf Goodman will continue as a standalone business, with former Saks’ chief merchandising officer Tracy Margolies as president.
