Parent of Saks Fifth Avenue HBC to Buy Luxury Retailer Neiman Marcus Group for $2.65 Billion in Merger Acquisition to Form Saks Global, Neiman Marcus Group Owns Neiman Marcus & Bergdorf Goodman
10th July 2024 | Hong Kong
Parent of Saks Fifth Avenue HBC has announced to buy luxury retailer Neiman Marcus Group for $2.65 billion in merger acquisition to form Saks Global. Neiman Marcus Group owns Neiman Marcus & Bergdorf Goodman. Saks Fifth Avenue is the leading name in luxury shopping. Announcement (4/7/24): “HBC, parent company of Saks Fifth Avenue, has entered into a definitive agreement to acquire Neiman Marcus Group (“NMG”), parent company of Neiman Marcus and Bergdorf Goodman, for a total enterprise value of $2.65 billion. Upon transaction close, HBC will establish Saks Global, a combination of world-class 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.” Neiman Marcus Group (NMG) is the parent company of leading U.S. multi-brand luxury retailers Neiman Marcus and Bergdorf Goodman. Saks Fifth Avenue is the leading name in luxury shopping. HBC is a holding company of investments and businesses at the intersection of technology, retail operations, and real estate. It is the majority owner of iconic ecommerce companies: Saks, a leading online destination for luxury fashion, and Saks OFF 5TH, a premier luxury off-price ecommerce company offering top brands at the best prices. These businesses were established as separate operating companies in 2021. HBC also wholly owns Hudson’s Bay, a leading premium retailer in Canada operating a national network of stores and TheBay.com, as well as SFA, the operator of Saks Fifth Avenue’s physical locations, and O5, the operating company for Saks OFF 5TH stores. With assets spanning top markets and prime locations across North America, HBC owns or controls—either entirely or with joint venture partners—approximately 42 million square feet of gross leasable area. HBC Properties and Investments, the company’s real estate and investments portfolio business, manages these assets along with additional real estate offerings, including Streetworks Development, its property development division. Founded in 1670, HBC is North America’s longest continuously operating company, with headquarters in New York and Toronto.
” Parent of Saks Fifth Avenue HBC to Buy Luxury Retailer Neiman Marcus Group for $2.65 Billion in Merger Acquisition to Form Saks Global, Neiman Marcus Group Owns Neiman Marcus & Bergdorf Goodman “
Saks Global – Upon closing of the transaction, Saks Global will comprise the Saks Fifth Avenue, Saks OFF 5TH, Neiman Marcus and Bergdorf Goodman brands, which will continue operations under their respective brand names. Saks Global will also include HBC’s U.S. real estate assets and Neiman Marcus Group’s real estate assets, creating a $7 billion portfolio of well-located retail real estate assets in top-tier luxury shopping destinations. Ian Putnam, currently President and CEO of HBC Properties and Investments, will become CEO of Saks Global Properties and Investments, which will manage, maximize and enhance the company’s robust portfolio of assets. Both Mr. Metrick and Mr. Putnam will report to Mr. Baker, who will serve as Executive Chairman of Saks Global.
HBC’s Canadian Retail and Real Estate Assets – Upon closing of the transaction, HBC’s Canadian business will be recapitalized as a standalone entity, separate from Saks Global, with significantly reduced leverage and enhanced liquidity. HBC will continue to wholly own its Canadian retail and real estate assets, including Hudson’s Bay, which operates TheBay.com and the Hudson’s Bay network of stores, as well as a CAD$2 billion real estate portfolio. As a result, HBC’s Canadian business will be well positioned to support future growth, while continuing to serve its loyal Canadian customer base.
Transaction Details – The Boards of Directors of HBC and Neiman Marcus Group have approved the transaction. The transaction is subject to the receipt of required regulatory approvals, and other customary closing conditions. Until closing, the companies will continue to operate separately. The purchase price is expected to be funded by a combination of equity capital from new and existing shareholders and debt facilities. Amazon 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. Rhône Capital, a transatlantic middle-market private equity firm and affiliated investment entities, will continue as the active lead investor in Saks Global. Global software investor, Insight Partners, an investor in Saks.com, will be a shareholder in the new company. Salesforce will also become an investor at closing. HBC has secured a $1.15 billion fully committed term loan financing from investment funds and accounts managed by affiliates of Apollo, and a $2 billion fully committed revolving asset based loan facility from Bank of America (lead underwriter), Citigroup, Morgan Stanley, RBC Capital Markets, and Wells Fargo. The transaction deleverages the combined enterprise while ensuring that Saks Global, on a pro forma basis, will have significant liquidity.
About HBC – HBC is a holding company of investments and businesses at the intersection of technology, retail operations, and real estate. It is the majority owner of iconic ecommerce companies: Saks, a leading online destination for luxury fashion, and Saks OFF 5TH, a premier luxury off-price ecommerce company offering top brands at the best prices. These businesses were established as separate operating companies in 2021. HBC also wholly owns Hudson’s Bay, a leading premium retailer in Canada operating a national network of stores and TheBay.com, as well as SFA, the operator of Saks Fifth Avenue’s physical locations, and O5, the operating company for Saks OFF 5TH stores. With assets spanning top markets and prime locations across North America, HBC owns or controls—either entirely or with joint venture partners—approximately 42 million square feet of gross leasable area. HBC Properties and Investments, the company’s real estate and investments portfolio business, manages these assets along with additional real estate offerings, including Streetworks Development, its property development division. Founded in 1670, HBC is North America’s longest continuously operating company, with headquarters in New York and Toronto.
About Saks Fifth Avenue – Saks Fifth Avenue is the leading name in luxury shopping. Since 1924, the brand has maintained a reputation for delivering an expertly curated assortment of fashion and highly personalized service. The Saks Fifth Avenue experience offers seamless all-channel shopping through an elevated digital platform and in-person services provided by an extraordinary network of 39 Saks Fifth Avenue stores across North America.
About Neiman Marcus Group (NMG) – NMG is the parent company of leading U.S. multi-brand luxury retailers Neiman Marcus and Bergdorf Goodman. The company successfully transformed itself into a profitable luxury relationship business by Revolutionizing Luxury Experiences for customers, brand partners, communities, and associates. Its differentiated business model is anchored around integrated retail, an expertly curated product assortment, and a sales-assisted approach. The company’s culture of Belonging, powered by its 10,000+ associates, celebrates the individual talents that form its collective strength. NMG WOW, its unique and flexible integrated working philosophy empowers associates to do their best work.
Parent of Saks Fifth Avenue HBC to Buy Luxury Retailer Neiman Marcus Group for $2.65 Billion in Merger Acquisition to Form Saks Global, Neiman Marcus Group Owns Neiman Marcus & Bergdorf Goodman
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