(Reuters) -The parent of Saks Fifth Avenue sealed a $2.65 billion deal to buy rival Neiman Marcus with help from Amazon, taking a minority stake in the new company, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.
Neiman Marcus went bankrupt in 2020 in part as pandemic-led lockdowns hampered demand for luxury goods.
The boards of Saks parent HBC and Neiman Marcus have approved the transaction, and an announcement could come as soon as this evening, the Wall Street Journal report said.
Amazon would take a minority stake in the new company, which will be called Saks Global, and would provide technology and logistical expertise, the report added.
Salesforce would be another minority shareholder, and assist with the adoption of artificial intelligence, the Wall Street Journal said, citing a source.
Saks already does business with both Amazon and Salesforce, so the transaction would deepen their partnerships, the report said.
Amazon declined to comment, while HBC, Saks Fifth Avenue, Salesforce and Neiman Marcus did not immediately respond to Reuters requests for comments.
HBC is financing the deal with $2 billion it raised from existing investors, the report said.
Existing investors include Rhone Capital, the Abu Dhabi Investment Council and NRDC Equity Partners, a private-equity firm run by Richard Baker, HBC’s executive chairman, and his son Jack Baker. Apollo Global Management APO is providing $1.15 billion in debt financing.
(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Shinjini Ganguli)
