HBC sells stake in Saks online business for US$500M, makes it a separate company
An ironwork logo adorns the facade of Saks flagship store on New York's Fifth Avenue, Monday, July 29, 2013. (AP Photo/Richard Drew)
TORONTO -- HBC has signed a deal to sell a minority stake in Saks Fifth Avenue's ecommerce business and turn it into a separate company.
The retailer says private equity firm Insight Partners has agreed to invest US$500 million in a deal valuing the standalone business that will be known as Saks at US$2 billion.
The retailer's 40 stores will operate separately as an entity referred to as SFA, which will remain wholly owned by HBC.
Marc Metrick, previously president and CEO of Saks Fifth Avenue, will serve as CEO of Saks and a member of the company's board of directors. Larry Bruce will be president of SFA.
HBC says Saks and SFA will be better able to plan and invest in their respective models as separate but related companies.
The company says Saks and SFA will work together to continue delivering a seamless customer experience.
This report by The Canadian Press was first published March 5, 2021