Saks Fifth Avenue’s parent company, HBC Announced Thursday The deal to acquire Neiman Marcus Group, the parent company of Neiman Marcus and Bergdorf Goodman, for $2.65 billion.
HBC said if the deal closes, it will create Saks Global, which will include Saks Fifth Avenue, Saks Off Fifth, Neiman Marcus and Bergdorf Goodman. Each of the established retailers will continue to operate under their own brands.
“We are excited to take this step to combine these iconic luxury brands,” said Richard Baker, executive chair and CEO of HBC. “For years, many in the industry have been anticipating this transaction and the benefits it will bring to our customers, partners and employees.”
Neiman Marcus Group CEO Jeffrey van Raemdonck called the deal “a testament to our team’s unwavering commitment to building profitable customer relationships, driven by our differentiated business model.”
“We believe this is a proactive choice in an evolving retail landscape and one that will create value for our customers and brand partners,” he added.
The deal comes amid a backdrop of downturns for the storied department store: Macy’s said in February it would close 150 “low-productivity stores” over the next three years as it amid declining sales and focuses on expanding its luxury brand offerings.
“This is an exciting time for luxury retail. Advancements in technology are creating new opportunities to redefine the customer experience and we look forward to delivering great value for our customers, brand partners and employees,” said Baker.
Mark Metrick, CEO of Saks, the online version of Saks Fifth Avenue, will become CEO of the yet-to-be-formed Saks Global, according to HBC.
“Saks has remained steadfast in its commitment to be at the forefront of luxury fashion by meeting customers not only where they are but where they are going,” Metrick said.
“With our continued focus on innovation, we are ready to foster growth for our brand partners and create career development opportunities for the incredible talent across Saks Global.”
