Topline
Saks Fifth Avenue’s owner, Hudson’s Bay Co. closed a $2.65 billion acquisition of luxury retailer Neiman Marcus, according to The Wall Street Journal, which will merge Saks and Neiman with the help of Amazon and Salesforce amid a stagnating personal luxury market.
The deal could be announced as soon as today. Photographer: Jeenah Moon/Bloomberg
Key Facts
Neiman and Hudson’s Bay’s boards approved the acquisition and may announce the blockbuster deal as soon as this evening, The Wall Street Journal reported.
Amazon and Salesforce stepped in to help facilitate the merger and will take minority stakes in Saks Global—the name of the new company, according to Bloomberg, citing an unnamed person familiar with the matter.
The deal will be financed with $2 billion that Hudson’s Bay raised from investors and bring 39 Saks Fifth Avenue stores and 36 Neiman Marcus stores under the merged company, Bloomberg reported.
The acquisition of Neiman Marcus seeks to reduce costs and increase profitability, according to Bloomberg, as the personal luxury goods market continues to experience a slowdown in spending.
Neiman Marcus and Hudson’s Bay did not immediately respond to Forbes’ request for comment.
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Tangent
Amazon’s stock closed down more than 1% on Wednesday at $197.59 following news that its billionaire founder Jeff Bezos plans to sell $5 billion worth of Amazon shares.
Forbes Valuation
We estimate Bezos’ net worth at $214.3 billion, making him the second-wealthiest person in the world behind Tesla chief Elon Musk ($248.7 billion).
Key Background
Neiman’s acquisition by Hudson’s Bay comes four years after the luxury retailer filed for bankruptcy following debt struggles and temporary store closures brought on by the COVID-19 pandemic. Meanwhile, Saks has dealt with liquidity issues and running behind on bills, according to CNBC. The companies have been in and out of merger negotiations for years, with Neiman most recently turning down a nearly $3 billion offer from Hudson’s in December.
Further Reading
Innovation Needed As The Luxury Goods Market Stalls In 2024 (Forbes)
Saks Owner to Buy Neiman Marcus—With Help From Amazon (WSJ)
Saks Owner Nears $2.65 Billion Neiman Deal With Amazon Backing (Bloomberg)
