New York City and Dallas — HBC, the New York City-based parent company of Saks Fifth Avenue, has agreed to acquire Dallas-based Neiman Marcus Group. The merger between the two luxury fashion retailers is valued at $2.6 billion. An estimated closing date was not released.
Following the acquisition, HBC will establish Saks Global, an entity that will combine the intellectual property and real estate assets of the two companies. Brands that are already owned by HBC or Neiman Marcus, including Saks OFF 5th, Bergdorf Goodman and Last Call Outlet, will continue operations under their original names.
HBC will fund the purchase through a combination of equity from new and existing shareholders. Notably, both Amazon and Salesforce will be shareholders in the new company upon closing, with the Seattle-based e-commerce giant also expected to take on a consultative role.
According to CNN, the two companies have been discussing a merger for several years. The Atlanta-based news network also reports that Saks currently operates 39 stores, while Neiman Marcus, which filed for Chapter 11 bankruptcy in 2020, operates 36 stores.
“For years, many in the industry have anticipated this transaction and the benefits it would drive for customers, partners and employees,” says Richard Baker, CEO and executive chairman of HBC. “This is an exciting time in luxury retail, with technological advancements creating new opportunities to redefine the customer experience. We look forward to unlocking significant value for our customers, brand partners and employees.”
HBC, which also has a headquarters in Toronto, owns and operates some 42 million square feet of gross leasable area across its portfolio of brands, which includes Canadian department store chain Hudson’s Bay. Neiman Marcus was founded in 1907 and acquired Bergdorf Goodman in 1987.
— Taylor Williams