Saks Global Completes $2.7 Billion Neiman Marcus Acquisition

In a major move in the luxury retail sector, Saks Global has completed a $2.7 billion acquisition of Neiman Marcus Group, merging some of the most famous names in high-end retail. This transaction, initially revealed in July, brings Saks Fifth Avenue, Saks Off 5th, Neiman Marcus, and Bergdorf Goodman under a newly created corporate umbrella, while still operating under their individual brand identities. The acquisition was supported by equity contributions from significant investors including Amazon and Salesforce, who aim to leverage technology and innovative strategies to enhance customer experiences. Richard Baker, executive chairman of Saks Global, highlights the strategic vision of forming a multi-brand portfolio that aims to redefine the luxury shopping experience. The newly formed Saks Global, a division under Kansas City-based Hudson’s Bay Co. (HBC), now controls a combined $7 billion real estate portfolio, bolstering its presence in the U.S. While Saks Global focuses on the U.S. market, HBC's Canadian operations will function as an independent entity. Beyond direct financing, debt instruments such as $2.2 billion in senior secured notes have been employed, accompanied by existing relationships with investors like Rhône and Insight Partners. Leadership within Saks Global undergoes restructuring, with former CEO Marc Metrick and other key executives assuming roles to support growth and innovation. The acquisition is poised to transform the luxury retail space by integrating advanced technology and fostering strategic synergies across Saks Global’s extensive portfolio.