Saks owner to buy luxury retailer Neiman Marcus in $2.65-billion deal

(Recasts paragraph 1 and adds inheritance connected companies and woody successful paragraphs 4, 6, 8, 10-12)

July 4 (Reuters) - Saks Fifth Avenue genitor HBC volition get department-store concatenation Neiman Marcus successful a $2.65-billion deal, the companies said connected Thursday, giving them stronger negotiating powerfulness with vendors and greater quality to power costs.

The woody comes with luxury retailers battling slowing request arsenic precocious involvement rates and ostentation unit customers to crimp budgets, pursuing a luxury retail roar aft the pandemic.

HBC said it volition found Saks Global, a combined entity of Saks Fifth Avenue, Neiman Marcus and different luxury retail and existent property assets.

Neiman filed for bankruptcy extortion successful 2020 aft the pandemic forced the closing of Neiman and different stores crossed the United States, crushing the company's revenues.

Neiman Marcus is known for selling decorator dresses, shoes, handbags and different luxury products, catering to affluent customers.

Reuters had reported connected Wednesday that HBC agreed to bargain Neiman Marcus.

Marc Metrick, CEO of the e-commerce Saks business, volition tally the combined company.

Saks Global arsenic a combined entity volition vie with Nordstrom, Bloomingdale's and Macy's, which is reportedly successful talks to merchantability itself to Arkhouse Management and Brigade Capital Management for astir $6.9 billion.

HBC and Neiman said online retailer Amazon.com and lawsuit narration absorption bundle supplier Salesforce volition besides beryllium investors successful Saks Global, providing technology, logistics and assistance with the integration of artificial intelligence.

Existing HBC capitalist Rhone Capital, a private-equity firm, volition beryllium the pb capitalist successful Saks Global.

HBC is financing the woody with funds raised from caller and existing shareholders and debt. Private-equity steadfast Apollo Global Management is providing $1.15 cardinal successful indebtedness financing.

The Saks proprietor has besides secured $2 cardinal successful indebtedness financing from a syndicate of Wall Street banks.

JPMorgan and Lazard served arsenic the fiscal advisers to Neiman Marcus Group successful the deal. (Reporting by Arasu Kannagi Basil and Akash Sriram successful Bengaluru; Editing by Paul Simao and Rod Nickel)

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