Saks proprietor to purchase Neiman Marcus with assist from Amazon, WSJ studies By Reuters

(Reuters) -The mum or dad of Saks Fifth Avenue sealed a $2.65 billion deal to purchase rival Neiman Marcus with assist from Amazon (NASDAQ:), taking a minority stake within the new firm, the Wall Avenue Journal reported on Wednesday, citing individuals acquainted with the matter.

Neiman Marcus went bankrupt in 2020 partly as pandemic-led lockdowns hampered demand for luxurious items.

The boards of Saks mum or dad HBC and Neiman Marcus have accredited the transaction, and an announcement may come as quickly as this night, the Wall Avenue Journal report stated.

Amazon would take a minority stake within the new firm, which will likely be known as Saks World, and would supply know-how and logistical experience, the report added.

Salesforce (NYSE:) can be one other minority shareholder, and help with the adoption of synthetic intelligence, the Wall Avenue Journal stated, citing a supply.

Saks already does enterprise with each Amazon and Salesforce, so the transaction would deepen their partnerships, the report stated.

Amazon declined to remark, whereas HBC, Saks Fifth Avenue, Salesforce and Neiman Marcus didn’t instantly reply to Reuters requests for feedback.

HBC is financing the take care of $2 billion it raised from current buyers, the report stated.

Present buyers embody Rhone Capital, the Abu Dhabi Funding Council and NRDC Fairness Companions, a private-equity agency run by Richard Baker, HBC’s government chairman, and his son Jack Baker. Apollo World Administration (NYSE:) APO is offering $1.15 billion in debt financing.