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HBC to Acquire Neiman Marcus Group for $2.65B; Amazon, Salesforce are Investors
HBC, parent company of Saks Fifth Avenue, has agreed to acquire Neiman Marcus Group, parent company of Neiman Marcus and Bergdorf Goodman, for a total enterprise value of $2.65 billion. Upon transaction close, HBC will establish Saks Global, comprising Saks Fifth Avenue, Saks OFF 5TH, Neiman Marcus and Bergdorf Goodman, each of which will continue operations under their respective brands.
Current Saks.com CEO Marc Metrick will become CEO of Saks Global. Ian Putnam, currently president and CEO of HBC Properties and Investments, will become CEO of Saks Global Properties and Investments, which will manage, maximize and enhance the company’s $7-billion portfolio of retail real estate assets.
“For years, many in the industry have anticipated this transaction and the benefits it would drive for customers, partners and employees,” said Richard Baker, HBC executive chairman and CEO. “This is an exciting time in luxury retail, with technological advancements creating new opportunities to redefine the customer experience, and we look forward to unlocking significant value for our customers, brand partners and employees.”
The purchase price is expected to be funded by a combination of equity capital from new and existing shareholders and debt facilities. Amazon will be an investor in and work with Saks Global to innovate on behalf of customers and brands partners following the close of the transaction, and Salesforce will also become an investor at closing.
HBC has secured a $1.15-billion fully committed term loan financing from investment funds and accounts managed by affiliates of Apollo, and a $2-billion fully committed revolving asset based loan facility from lead underwriter Bank of America, Citigroup, Morgan Stanley, RBC Capital Markets and Wells Fargo.
- ◦Sale/Acquisition
