On December 23, Saks Global announced the completion of its acquisition of Neiman Marcus Group for a total enterprise value of $2.7 billion. This significant deal brings iconic luxury brands Neiman Marcus, Bergdorf Goodman, Saks Fifth Avenue, and Saks OFF 5TH under the Saks Global umbrella. While each brand will retain its unique identity, they will collectively aim for growth under a unified vision.
The acquisition, first announced in July, was spearheaded by HBC, the parent company of Saks Fifth Avenue. Following the transaction, HBC’s Canadian operations—including Hudson’s Bay stores and its website—have been recapitalized and will operate with separate financing from Saks Global.
Neiman Marcus: A Step Toward Recovery
This acquisition marks a pivotal moment for Neiman Marcus, which faced significant challenges during the COVID-19 pandemic. The forced closure of stores across the United States in 2020 caused a sharp revenue decline, leading the company to file for bankruptcy protection. The integration into Saks Global’s portfolio represents a fresh opportunity for Neiman Marcus to reclaim its position at the forefront of the luxury retail market.
New Leadership and Growth Strategies
Saks Global’s Executive Chairman, Richard Baker, emphasized the historical significance of this integration.
“By uniting Neiman Marcus, Bergdorf Goodman, and Saks Fifth Avenue, we have created an unparalleled multi-brand luxury portfolio with tremendous growth potential. With data and innovation at our core and a portfolio of prime real estate, we aim to redefine the luxury shopping experience.”
Under the new structure, Marc Metrick will continue as CEO of Saks Global Operating Group. Reflecting on the opportunity presented by the acquisition, Metrick said,
“As one company, we have an opportunity to transform the way we serve consumers, blending art and science to ensure each customer’s experience is unmistakably their own. With deep relationships across the industry, cutting-edge personalization and strategic technology partnerships, we are poised to drive innovation and growth.”
In addition, Emily Essner, formerly Saks’ Chief Marketing Officer, has been appointed to the newly created position of President and Chief Commercial Officer. Her leadership is expected to drive the evolution of customer experiences and revenue growth. Meanwhile, Bergdorf Goodman will remain an independent brand under Saks Global, with Tracy Margolies, previously Saks’ Chief Merchandising Officer, stepping into the role of President.
Real Estate and Investment Opportunities
Saks Global is also expanding its real estate and investment operations. Ian Putnam, the newly appointed CEO of Saks Global Properties & Investments, outlined plans to leverage the company’s $7 billion real estate portfolio to foster growth in the luxury market. With a focus on strategic investments and real estate development, Saks Global aims to maximize synergies across its integrated brand portfolio.
Backed by Strong Investors and Technology Partners
The acquisition was made possible with support from new investors, including Amazon, Salesforce, Authentic Brands Group, and G-III Apparel Group. Financing was secured through $2.2 billion in senior secured notes and an asset-based lending (ABL) revolving credit facility. These partners will assist Saks Global in optimizing customer experiences through data and AI while driving innovation through strategic collaborations.
With a robust portfolio and innovative partnerships, Saks Global is well-positioned to redefine the luxury retail landscape. This bold step not only signals a new chapter for the company but also sets the stage for transformative changes in the luxury shopping experience.