New York – HBC, the parent company of Hudson’s Bay and Saks Fifth Avenue, is adding to its retail portfolio with the acquisition of 2 leading U.S. luxury retailers.
The company has entered into a definitive agreement to acquire Neiman Marcus Group, parent company of Neiman Marcus and Bergdorf Goodman, for a total value of $2.65 billion.
Once the transaction closes, HBC will establish Saks Global, a combination of luxury retail and real estate assets, including Saks Fifth Avenue, Saks Off 5TH, Neiman Marcus and Bergdorf Goodman Each of those nameplates will continue to operate under their own brands.
HBC’s Canadian business will be recapitalized as a standalone entity, separate from Saks Global, “with significantly reduced leverage and enhanced liquidity,” according to HBC. 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.
“This is an exciting time in luxury retail, with technological advancements creating new opportunities to redefine the customer experience, and we look forward to unlocking significant value for our customers, brand partners and employees,” said Richard Baker, HBC executive chairman and CEO.
Current Saks.com CEO Marc Metrick will become CEO of Saks Global, leading Saks Global’s retail and consumer businesses and driving the strategy to advance the luxury shopping experience.
Geoffroy van Raemdonck, CEO of Neiman Marcus Group, said the acquisition will create value for customers and brand partners.
“Saks Fifth Avenue shares our passion for connecting customers with the world’s best luxury fashion,” he added. “With our complementary capabilities and a new long-term capital structure, the combined group will position our iconic Neiman Marcus and Bergdorf Goodman brands for continued success.”
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