Willkie represented Insight Partners in the transaction.
On March 5, HBC and leading growth capital investor, Insight Partners, announced they have entered into a partnership that establishes Saks Fifth Avenue's ecommerce business as a standalone entity, which will be known as Saks. Insight Partners has made a $500 million minority equity investment in Saks, valuing the business at $2 billion.
The retailer’s 40-store fleet will operate separately as an entity referred to as SFA, which remains wholly owned by HBC. Saks and SFA will operate as separate but related sister companies.
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. Saks plans to make strategic investments to evolve and expand its online experience, accelerating Saks’ growth as a luxury ecommerce platform. These investments will bolster Saks’ already well-established digital business, starting with strengthening its service model through elevated styling capabilities and data-driven personalization. Saks Fifth Avenue will remain as the customer-facing name for both businesses.
Founded in 1670, HBC is a holding company of portfolio businesses that operate at the intersection of retail and real estate. Among HBC’s portfolio companies are three distinguished retailers: Saks Fifth Avenue, a premier luxury retailer, Hudson’s Bay, Canada’s preeminent multi-category retailer, and Saks OFF 5TH, a leading off-price retailer. HBC owns or controls, either entirely or with joint venture partners, approximately 40 million square feet of gross leasable area.
Insight Partners is a leading global venture capital and private equity firm investing in high-growth technology and software ScaleUp companies that are driving transformative change in their industries. Founded in 1995, Insight Partners has invested in more than 400 companies worldwide and has raised through a series of funds more than $30 billion in capital commitments.
The Willkie team was led by partners Matthew Guercio and Robert Rizzo and included partner Erin Kinney; associates Frances Dales and Christine Ollmann; and law clerk Matthew Williams.