Saks Global finalizes $2.7B purchase of Neiman Marcus Group; new leaders named
A new luxury powerhouse is ready to shake up the high-end U.S. department store market.
Saks Global said that it has finalized its acquisition of Neiman Marcus Group for a total enterprise value of $2.7 billion. With the closing of the deal, which was first annnounced by Saks parent HBC in July 2024, the Saks Global umbrella now includes Saks Fifth Avenue, Saks Off Fifth, Neiman Marcus and Bergdorf Goodman, with each banner “continuing to serve customers under their own brand,” the company said.
“This milestone transaction marks a transformative moment for Saks Global and the luxury retail industry,” said Richard Baker, executive chairman of Saks Global. “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.”
Neiman Marcus operates 36 stores, two Bergdorf Goodman stores and five Last Call off-price outlet. There are 39 Saks Fifth Avenue stores and 95 Saks Off 5th locations, as well as well as Saks.com online business.
Leadership
Marc Metrick, CEO of Saks, will serve as CEO of Saks Global Operating Group, and Ian Putnam will serve as CEO of Saks Global Properties & Investments. Both will report to Baker.
Saks and Neiman Marcus will be managed by one team, while Bergdorf Goodman will remain a standalone business under the Saks Global umbrella. Tracy Margolies, who previously served as chief merchandising officer for Saks, has been appointed president of Bergdorf’s.
To ensure Saks Global is “best positioned to drive the growth of its luxury businesses,” the company said it has established the role of president and chief commercial officer. Emily Essner, who previously served as chief marketing officer at Saks, has been promoted into the new role.
“This role will break the mold for how we bring the luxury shopping experience to life,” said Metrick. “Emily is the ideal person to lead this critical new function and advance our strategy to meet customers’ increasing demand for individualized experiences.”
In other appointments, Saks Global named Bill Bine to the new role of chief transformation officer. He joins Saks Global from Neiman Marcus Group where he served as chief supply chain officer.
The completion of the deal also brought with it several departures from Neiman Marcus Group, including Geoffroy van Raemdonck as CEO.
Transaction Details
The transaction is being financed through a combination of equity contributions from new investors, including Amazon, Authentic Brands Group, Salesforce, M. Klein & Company, G-III Apparel Group, and others, an issuance of $2.2 billion of Senior Secured Notes, and an Asset-Based Lending (ABL) revolving credit facility.
Existing investors, including Rhône, Insight Partners, Abu Dhabi Investment Council, Abrams Capital and others are maintaining their ownership in the new structure.
Canadian Retail and Real Estate Assets
As a result of the transaction, HBC’s Canadian business and real estate assets and Saks Global will be separately financed. Hudson’s Bay, including its stores and TheBay.com, has been recapitalized and is positioned to execute on its business plan. Hudson’s Bay will continue to own or lease a $2 billion (Canadian dollars) real estate portfolio, either entirely or with its joint venture partner, RioCan Real Estate Investment Trust.
