Macy's (NYSE:M) has signed an agreement to acquire Bluemercury, the largest luxury beauty products and spa services retailer in the United States, for $210 million in cash. The transaction is expected to be completed by the end of the quarter, May 2.
Bluemercury currently operates 60 specialty stores in 18 states, typically street-level locations and urban lifestyle centers. The company also sells products online. The retailer is known for selling high-end luxury beauty brands, and most locations include in-house spas.
Bluemercury will continue to be led by Co-founders Marla and Barry Beck, and the retailer's 500 associates will remain in their current roles.
"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 J. Lundgren, Macy's chairman and CEO. "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."
Within Macy's, Bluemercury leadership will report directly to Lundgren.
The merger news comes just weeks after Macy's announced it would close 14 stores and focus on its omnichannel approach, which includes its popular click-and-collect and ship-from-store services. Click-and-collect was first piloted back in March, along with same-day delivery. And just prior to the holidays, the company announced an expansion of its same-day delivery and in-store pickup options to more locations around the country.
-See this Macy's press release
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