Saks Fifth Avenue, Neiman Marcus to merge in $2.65B blockbuster deal — Amazon to acquire stake

  • 📰 nypost
  • ⏱ Reading Time:
  • 41 sec. here
  • 9 min. at publisher
  • 📊 Quality Score:
  • News: 44%
  • Publisher: 67%

Business News

Fashion & Beauty,Amazon,Jeff Bezos

The deal will give Amazon unprecedented access to the luxury market — a tricky segment where the company has tried and mostly failed to get a credible foothold for more than a decade.

Saks Fifth Avenue and Neiman Marcus have reportedly agreed to a blockbuster merger that combines the nation’s two dominant luxury retailers — and Amazon is joining the deal, too., will acquire Neiman Marcus for $2.65 billion, according to sources close to the situation — a once unthinkable tie-up that comes as both chains grappled with a multiyear slowdown in luxury spending.

Business software giant Salesforce — headed by Silicon Valley tycoon Marc Benioff — also will become an investor in Saks Global, sources said. The deal will be financed by a $1.15 billion term loan from Apollo Global Management and a $2 billion revolving asset based loan from several banks including Bank of America and Morgan Stanley along with investments from Amazon and Salesforce, sources close to the deal said.

Van Raemdonck led Neiman through a 2020 bankruptcy during his six-year tenure, which was marked by nearly 100% turnover at the top levels of the company.Jeff Bezos’ Amazon is an investor in Saks Global, the entity that will own both Saks Fifth Avenue and Neiman Marcus.The two Bergdorf Goodman stores in NYC are often referred to as the crown jewels of the Neiman Marcus portfolio.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 91. in BUSİNESS

Business Business Latest News, Business Business Headlines