NEW YORK — Nordstrom will buy Macy’s for $3,218 billion, the world’s largest apparel company announced Wednesday, as it ramps up its expansion plans to become more globally relevant.
The $3 billion transaction is a sign of confidence for the company, which is already the largest U.S. apparel company by sales.
Macy’s, which also owns department stores J.C. Penney, Macys, Bloomingdale’s and Neiman Marcus, had been trying to buy rival online retailer Amazon.com Inc. for years.
Nordstrom has long been a leader in online shopping, but this deal is the biggest and most aggressive yet, said Peter Mays, chief executive of The Mays Group, which manages about $400 billion in assets.
It also gives Nordstrom an even stronger foothold in online retail than it has had in the past.
Macy’s shares rose more than 2% in after-hours trading.
Macy said it was the largest acquisition ever made in a single transaction in terms of total assets, adding $1.6 billion in total assets to its holdings.
That makes the combined company the largest retailer in the U.K. and Germany, and the largest in the world.
Nordstrom CEO and chairman Terry Lundgren said the combined companies will create an even bigger store network, as well as become more relevant in the fast-growing world of online shopping.
The combined companies, which already operate online in 50 countries, will also be able to offer even more breadth of products and services to customers and more variety and choice.
“The combined company will be better positioned to serve customers around the world,” Lundgren wrote in a statement.
The combined companies’ stores will expand across five countries, including the U., U.P., U.” and Japan, and will employ more than 12,000 people worldwide.
The merged company is expected to open at least three new stores in the United States this year.
Marlene Coughlin, the company’s chief operating officer, said the deal is “a landmark for Nordstrom.
The combination of our two companies will be the most disruptive and transformational store-to-shopping experience ever.
“Coughlin said the companies will expand their reach, especially online, by offering more options and new products and by creating new customer-focused stores.
Nordstrans decision to combine two companies that have historically operated independently is “unprecedented,” Coughline said.
Molly Greenfield, a Macy’s spokeswoman, said in a blog post that the combined store network will offer customers the same assortment of products, including clothing, home decor and accessories.
She said the stores will also offer “new and exciting ways to shop.”
Macys has about 1,200 stores worldwide, including in the New York area, London, Dubai, Singapore, Mexico City, Buenos Aires and New York City.
Macys shares are up about 4% in premarket trading.
The deal is subject to regulatory approval and regulatory filings, and Macy’s shares closed down about 1% at $3 per share.
Marianne Johnson, a senior vice president at The Mains Group, said she’s looking forward to “being part of a larger global retailer, where we can make a difference.” “
We believe this merger will deliver synergies, enhance the company and provide Macy’s customers with value that will enable them to thrive in a changing and changing economy,” he said in an emailed statement.
Marianne Johnson, a senior vice president at The Mains Group, said she’s looking forward to “being part of a larger global retailer, where we can make a difference.”
Macy’s plans to expand globally, including into new markets.
The deal will bring together Macy’s and The Mates Group, an umbrella group that includes The Mears Group and The Associates.
“We look forward to working with both companies and are pleased to continue our partnership with them,” Johnson said in the statement.
The company will open at a mall in London in 2018.
The company said the agreement will not change its current focus on delivering products that are both affordable and fun.
“Macy is a trusted name for women everywhere,” Lundberg said in his statement.
“This merger is an exciting milestone for both companies, and we look forward for the continued success of Macy’s.”