Saks Global has finalized its acquisition of Neiman Marcus Group (NMG) for a total enterprise value of $2.7 billion. Saks Global now includes Neiman Marcus, Bergdorf Goodman, Saks Fifth Avenue and Saks OFF 5TH, each continuing to serve customers under their own brand.
“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.”
Marc Metrick 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.
“Bringing these iconic brands together is a significant step forward for luxury retail. 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,” Metrick said. “With deep relationships across the industry, cutting-edge personalization and strategic technology partnerships, we are poised to drive innovation and growth. I look forward to working with the many talented leaders and employees from NMG and across Saks Global as we embark upon our journey to bring these businesses together.”
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 this role, leading the company’s go-to-market strategy by aligning key commercial functions to enhance the customer experience and drive revenue.
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. Saks Global has also appointed Bill Bine, formerly chief supply officer at Neiman Marcus Group, to the new role of chief transformation officer.
As an investor, Amazon will work with Saks Global to innovate on behalf of customers and brand partners. Authentic Brands Group, a global brand owner and licensing company, is an investor in Saks Global, and is Saks Global’s joint venture partner in Authentic Luxury Group (ALG). ALG leverages the combined capabilities of Authentic and Saks Global to maximize the potential of Authentic’s luxury brands across key sectors, including fashion, retail, digital, hospitality, real estate, art, and travel. Salesforce, also an investor in Saks Global, will support the business by enhancing its personalization strategy by utilizing first-party data and AI to create a highly customized shopping experience. G-III Apparel Group is an investor in Saks Global and will continue to support the company as a key merchandising partner.
M.Klein & Company served as financial advisor and capital markets advisor to Saks Global on the acquisition of Neiman Marcus Group and related financings. Solomon Partners also served as a financial advisor to Saks Global. Jefferies LLC served as a financial advisor to Saks Global and was also lead left bookrunning manager for the senior secured notes issuance. BofA Securities, RBC Capital Markets, Citigroup Global Markets Inc., and Morgan Stanley served as financial advisors to Saks Global, led the Asset-Based Lending (ABL) revolving credit facility, and served as joint bookrunning managers for the Senior Secured Notes issuance. Elm Street Advisors served as strategic, commercial and operational advisor. Deloitte served as a financial and tax advisor to Saks Global. Willkie Farr & Gallagher LLP served as legal counsel to Saks Global.
