- DPA |
Department store chain Macy's Tuesday agreed to buy Bluemercury Inc, a luxury beauty products and spa services retailer, for 210 million dollars in cash.
Macy's expects to close the deal in its fiscal first quarter which ends on May 2 and be accretive to its earnings in its first full year (fiscal 2016).
Bluemercury, based in Washington, D.C., operates about 60 specialty stores in 18 states, typically in prime street-level locations and urban lifestyle centers, as well as an online business. Products include luxury beauty brands, as well as M-61, a proprietary skin care brand. Most locations include in-house spas.
Bluemercury will continue to be led by Marla and Barry Beck, who co-founded the company in 1999. Its team of approximately 500 associates will remain in their current roles operating a stand-alone Bluemercury specialty business.
"Beauty is a core signature business for Macy's and Bloomingdale's and a continued platform for our company's profitable sales growth. With Bluemercury, our company can access a new channel to reach additional customers, add new dimensions to our product offering and apply our expertise in omnichannel retailing," said Terry Lundgren, Macy's chief executive officer.
"Our plan is to operate and significantly expand Bluemercury stores as a standalone business with an enhanced omnichannel component for a seamless customer experience across stores, online and mobile. Concurrently, we also plan to add selected Bluemercury products and boutiques to Macy's stores nationwide."
"With the full weight of Macy's resources, we will be able to accelerate our store penetration across the United States, bringing our specialty store format to urban and suburban markets throughout the country," said Barry Beck, Bluemercury's co-founder and chief operating officer.
"We are thrilled to team up with Macy's in this next chapter of our growth and we especially want to thank The Invus Group who has been a great partner since 2006."
Within Macy's, Bluemercury will report directly to Lundgren. Marla Malcolm Beck will continue as Bluemercury's chief executive officer and president. (dpa-AFX)