Wall Street Journal Summary – Saks owner to buy Neiman Marcus with help from Amazon, WSJ reports
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Key Facts Section
- Saks Fifth Avenue’s parent company HBC is acquiring Neiman Marcus for $2.65 billion.
- Amazon will take a minority stake in the new company, Saks Global, and provide technology and logistical expertise.
- Salesforce will also hold a minority stake and assist with artificial intelligence adoption.
Three-Point Summary
- HBC, the parent company of Saks Fifth Avenue, has agreed to buy Neiman Marcus for $2.65 billion, with significant contributions from existing investors and Apollo Global Management.
- Amazon and Salesforce will both become minority stakeholders in the new entity, Saks Global, enhancing their existing partnerships by providing technology, logistical expertise, and AI integration.
- The acquisition follows Neiman Marcus’s bankruptcy in 2020 due to the impact of pandemic lockdowns on the luxury goods market.
Article Summary
Reuters reported that HBC, the parent company of Saks Fifth Avenue, finalized a $2.65 billion acquisition of Neiman Marcus, with Amazon taking a minority stake in the new company, Saks Global, and contributing technology and logistical expertise. Salesforce will also become a minority shareholder, aiding in AI adoption. The acquisition, approved by the boards of both companies, follows Neiman Marcus’s 2020 bankruptcy due to pandemic-related declines in luxury goods demand. The deal is financed through $2 billion from existing investors, including Rhone Capital and the Abu Dhabi Investment Council, and $1.15 billion in debt financing from Apollo Global Management.
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