HBC, the parent company of Saks Fifth Avenue, has announced an agreement to acquire luxury retailer Neiman Marcus in a deal valued at $2.65 billion. The acquisition aims to enhance HBC’s negotiation power with vendors and bolster cost control as luxury retailers navigate decreased consumer demand amid high inflation and interest rates. Neiman Marcus, which sought bankruptcy protection in 2020 due to the pandemic’s impact, will be combined into a new entity called Saks Global. This combined entity, encompassing Saks Fifth Avenue, Neiman Marcus, and other luxury and real estate assets, will be led by Marc Metrick, CEO of Saks e-commerce business. Key investors in Saks Global will include Amazon.com and Salesforce, alongside existing HBC investor Rhone Capital. Apollo Global Management and a syndicate of Wall Street banks will finance the deal. Financial advisers for Neiman Marcus in the deal were JPMorgan and Lazard.

Luxury Retail, Private Equity, Technology,United States