Clothing retailer Neiman Marcus sold to Hudson’s Bay

Hudson's Bay Company (HBC) has confirmed its acquisition of Neiman Marcus Group (NMG), the parent company of Neiman Marcus and Bergdorf Goodman.

Transaction snapshot

• Deal value: $2.65 billion

• Deal multiples: N/A

• Deal type: Acquisition

• Investors: HBC, Amazon, Salesforce (minority stakes)

The acquisition will create Saks Global, a combined portfolio of luxury retail and real estate assets. This includes Saks Fifth Avenue, Saks Off 5th, Neiman Marcus and Bergdorf Goodman. Each brand will continue to operate independently.

HBC expects the merger to offer luxury consumers a more advanced shopping experience. This includes access to a wider product range, personalised interactions, and support for both established and emerging brands.

Marc Metrick, current Saks CEO and future CEO of Saks Global, said: "Saks has remained steadfast in our commitment to be at the forefront of luxury fashion, meeting customers not just where they are, but where they are going."

The deal brings together 39 Saks Fifth Avenue stores and 36 Neiman Marcus stores under the new company. It aims to reduce costs and increase profitability in a slowing personal luxury goods market.

Amazon and Salesforce will take minority stakes in Saks Global to help facilitate the merger. HBC raised $2 billion from investors to finance the deal.

This acquisition comes four years after Neiman Marcus filed for bankruptcy due to debt struggles and pandemic-related store closures. Saks has also faced liquidity issues and late payments to suppliers.

The companies have been in merger talks for years, with Neiman Marcus rejecting a nearly $3 billion offer from HBC in December.