HBC to buy Neiman Marcus for US$2.65 billion, combine it with Saks Fifth Avenue
Deal would unite America’s two largest high-end department-store chains
The owner of Saks Fifth Avenue is close to acquiring Neiman Marcus Group for US$2.65 billion, according to a person familiar with the matter — a deal that would unite America’s two largest high-end department-store chains in a bid to grab a bigger share of a slowing industry.
tap here to see other videos from our team.
HBC to buy Neiman Marcus for US$2.65 billion, combine it with Saks Fifth Avenue Back to video
tap here to see other videos from our team.
Amazon.com Inc. and Salesforce Inc. will be helping facilitate the deal by Saks owner Hudson’s Bay Co. The tech companies will take minority stakes in a new company, called Saks Global, according to the person. Hudson’s Bay will also finance the deal with US$2 billion raised from investors, the person said.
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, Victoria Wells and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, Victoria Wells and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
Sign In or Create an Account
Representatives for Hudson’s Bay and Amazon declined to comment. Salesforce didn’t immediately respond to a request for comment.
The combined department stores’ operations would be comprised of 39 Saks Fifth Avenue stores and 36 under the nameplate of its Dallas-based competitor, as well as two Bergdorf Goodman stores in Manhattan. Both chains also have outlet stores. The goal of the deal is to cut costs and boost profitability by giving the combined company bargaining power with vendors and reducing supply-chain and other shared costs.
The deal is the culmination of on-again, off-again talks between the two privately-held competitors during the past decade and a half. The combination of a recent slowdown in luxury sales and Neiman’s bankruptcy in 2020 let Neiman shed billions of dollars in debt, making it a more attractive target.
The Wall Street Journal earlier reported the deal.
—With assistance from Spencer Soper and Brody Ford.
Bloomberg.com
