HBC announces $2.6bn acquisition of Neiman Marcus Group to form Saks Global

In a landmark deal in the luxury retail industry, HBC, the parent company of Saks Fifth Avenue, has agreed to acquire Neiman Marcus Group for a total enterprise value of $2.65 billion. This strategic acquisition will result in the formation of Saks Global, a new entity that will combine the iconic luxury brands Saks Fifth Avenue, Saks OFF 5TH, Neiman Marcus, and Bergdorf Goodman under a single corporate umbrella.

The merger is set to redefine the luxury shopping experience by integrating technology-driven solutions to meet the evolving demands of the luxury consumer. Saks Global aims to enhance the personalized shopping experience across multiple channels, ensuring customers have seamless access to a wide array of fashion products.

Richard Baker, HBC Executive Chairman and CEO, expressed his enthusiasm about the merger: “We’re thrilled to take this step in bringing together these iconic luxury names… This is an exciting time in luxury retail, with technological advancements creating new opportunities to redefine the customer experience.”

Marc Metrick, current CEO of Saks.com, will lead Saks Global. He highlighted the future direction of the combined entity: “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.”

A key focus for Saks Global will be to advance the luxury shopping experience through enhanced online functionality and personalized service. The integration of AI and first-party data will allow Saks Global to tailor the shopping experience to individual customer preferences and improve service delivery by empowering sales associates.

Saks Global will continue to support both established and emerging brands, leveraging its enhanced ecommerce capabilities and prime retail locations. The new entity is also committed to creating value for employees by providing career development opportunities in a growing and evolving industry.

The transaction will also include the combination of HBC’s and Neiman Marcus Group’s U.S. real estate assets into a new $7 billion portfolio managed by Ian Putnam, who will become CEO of Saks Global Properties and Investments.

The purchase will be funded through equity from new and existing shareholders and a mix of debt facilities, with significant contributions from notable investors like Amazon, Rhône Capital, Insight Partners, and Salesforce. Financial advisory was provided by M. Klein & Company and Solomon Partners, among others.

This acquisition positions Saks Global as a powerhouse in luxury retail, set to leverage synergies between the brands to offer a unified and enriched customer experience. It reflects a strategic pivot in the luxury market towards consolidation and enhanced customer-centric retailing.