Saks Fifth Avenue Owner to Acquire Neiman Marcus for $2.65 Billion
With Aid from Amazon
In a move that will further consolidate the luxury retail market, the parent company of Saks Fifth Avenue has agreed to acquire Neiman Marcus for $2.65 billion with the help of Amazon.
The deal, which is expected to be announced as early as Thursday, will create a formidable luxury powerhouse with a combined revenue of over $10 billion. Saks Fifth Avenue is owned by Hudson's Bay Co., a Canadian department store chain. Neiman Marcus is owned by Ares Management, a private equity firm.
Amazon will provide a $1 billion loan to Hudson's Bay to help finance the acquisition. Amazon will also receive a minority stake in the combined company. The deal is expected to close in the fourth quarter of 2023.
The acquisition of Neiman Marcus will give Saks Fifth Avenue a stronger presence in the Dallas-Fort Worth area, where Neiman Marcus is headquartered. Saks Fifth Avenue will also gain access to Neiman Marcus's loyal customer base and its strong online presence.
The deal is the latest in a series of acquisitions in the luxury retail sector. In recent years, LVMH has acquired Tiffany & Co. and Bulgari, and Kering has acquired Gucci and Saint Laurent.