Macy’s has purchased the beauty brand Bluemercury and will operate it as a standalone business, while making some selected products available in Macy’s stores nationwide.
Today Macy’s Inc. a prime retailer with 825 stores in 45 US states has officially announced its acquisition of the beauty product brand Bluemercury. Macy’s also operates the Bloomingdales stores. Bluemercury is a lavish beauty products and spa provision trader that is fast growing in the US. The deal was signed between both companies for $210 million, and the transaction will be completed till May 2015.
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Both parties appear to be very satisfied with the merger and have issued positive statements. The official advisors for Bluemercury in the transactions were Goldman, Sachs & Co., TylerLLP and Cooley LLP and Patterson Belknap Webb. The official advisors for Macy’s were Credit Suisse Securities (USA) LLC and Jones Day.
Bluemercury was founded in 1999 and has 60 stores in 18 US states, operated by Marla and Barry Beck. The company will continue to be operated by the co-founders and its 500 employees will remain intact at their positions.
Bluemercury has stores located in different regions such as street-level locations, urban centres and even has online stores for convenience of customers. The products range from high end luxury skin care products and the stores also contains in-house spas with beauty experts that provide specialized skin care counselling.
Macy’s plans to expand the Bluemercury brand as a standalone venture. A few selected Bluemercury products will also be available at all Macy’s store nationwide. Macy’s hope to reach out to new customers through the expansion, as the beauty business has always been its main endeavour.
According to Marla Malcolm Beck, the creator of the M-16 laboratories and M-16 beauty products, the expansion will allow Bluemercury to become the finest beauty advisors and better equipped to help customers through the difficult process of skin care product selection. Marla Malcolm Beck will continue as Bluemercury’s Chief Executive Officer and President.
Barry Beck the co-founder of Bluemercury will remain as the Chief Operating Officer and in a statement said that he is thrilled to be working along with Macy’s as it will allow the growth of Bluemercury in unknown territories. Beck also specially thanked the Invus Group and will remain responsible for the management of all Bluemercury’s processes.
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As a part of Macy’s Inc. Bluemercury will be supervised by Terry J. Lundgren, Macy’s chairman and chief executive officer. According to Lundgren, the expansion into Bluemercury will make access into new channel relatively easy and their expertise will mutually benefit the beauty chain in retailing.