HBC, the parent company of Saks Fifth Avenue, announced its $2.65 billion acquisition of Neiman Marcus Group (NMG), the parent company of Neiman Marcus and Bergdorf Goodman.
At the completion of the transaction, HBC will establish Saks Global, which will encompass the retailers Saks Fifth Avenue, Saks OFF 5TH, Neiman Marcus and Bergdorf Goodman. The retailers will continue operations under their respective brands.
Current Saks.com CEO Marc Metrick will become CEO of Saks Global, which will include HBC’s U.S. real estate assets and Neiman Marcus Group’s real estate assets, creating a $7 billion portfolio of real estate assets in 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 portfolio of assets. Both Metrick and Putnam will report to Richard Baker, HBC executive chairman and CEO., who will serve as executive chairman of Saks Global.
HBC’s Canadian business will be recapitalized as a standalone entity, separate from Saks Global. 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 $2 billion real estate portfolio.
“We’re thrilled to take this step in bringing together these iconic luxury names, Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman,” said Baker. “For years, many in the industry have anticipated this transaction and the benefits it would drive for customers, partners and employees. 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.”
Photo: Saks Fifth Avenue’s store in Greenwich, Connecticut, courtesy of the company
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