Ropes & Gray and and Stikeman Elliott represented HBC in the transaction, while Willkie Farr & Gallagher represented Insight Partners.
HBC, the holding company of Saks Fifth Avenue, Hudson’s Bay, and Saks OFF 5th, closed a partnership with Insight Partners to establish Saks Fifth Avenue’s ecommerce business as a standalone entity. The entity 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. As separate but related sister companies, Saks and SFA will be better able to appropriately plan for and invest in their respective service models.
Founded in 1670, HBC is a holding company of portfolio businesses that operate at the intersection of retail and real estate. A long-term investor in iconic companies, HBC’s valuable assets span top markets and prime locations across North America.
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.
Morgan Stanley & Co. LLC served as HBC’s placement agent for the transaction. District Capital Partners served as financial to Insight Partners.
The Ropes & Gray team advising HBC was led by mergers & acquisitions partners Jason Freedman (Picture) and Matthew Jacobson (both of San Francisco). It included IP transactions partner Edward Black (Boston), tax partner Leo Arnaboldi (New York), finance partner Leo Klingbaum (New York), benefits partner Megan Bisk (Boston), real estate partner Richard Gordet (Boston), litigation & enforcement partner Randall Bodner (Boston) and privacy & data security partner Edward McNicholas (Washington, D.C.). The team also included counsel Milap Patel (Boston), Ellen Sueda (San Francisco), Benjamin Rhode (Chicago), James Kaplan (Boston), Kevin Angle (Boston) and Erica Han (Boston).
Involved fees earner: Kevin Angle – Ropes & Gray; Leo Arnaboldi – Ropes & Gray; Megan Bisk – Ropes & Gray; Edward Black – Ropes & Gray; Randall Bodner – Ropes & Gray; Jason Freedman – Ropes & Gray; Richard Gordet – Ropes & Gray; Erica Han – Ropes & Gray; Matthew Jacobson – Ropes & Gray; James Kaplan – Ropes & Gray; Leonard Klingbaum – Ropes & Gray; Edward McNicholas – Ropes & Gray; Milap Patel – Ropes & Gray; Benjamin Rhode – Ropes & Gray; Ellen Sueda – Ropes & Gray;
Law Firms: Ropes & Gray;
Clients: Hudson’s Bay Company;