Macy’s, Inc. has announced it has signed an agreement to acquire Bluemercury, Inc., a luxury beauty products and spa services retailer, for $210 million in cash.
Bluemercury, based in Washington, D.C., currently 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 well-known, high-end luxury beauty brands, as well as M-61, a proprietary skincare brand – all supported with personalized assistance from a team of beauty experts with a high level of technical product knowledge. 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.
Macy’s plans 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, Macy’s Inc. also plans to add selected Bluemercury products and boutiques to Macy’s stores nationwide.
“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 chairman and chief executive officer.
“We are excited to continue our aggressive expansion of Bluemercury while simultaneously leveraging Macy’s leadership in omnichannel technology, supply chain, and retail operations,” said Marla Malcolm Beck, Bluemercury’s co-founder and chief executive officer. “Keeping Bluemercury as a standalone business, while adding new expertise, will enable us to fulfill our mission of being the best at giving beauty advice and helping our customers make their way through the often complex process of purchasing beauty products.”
“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.”
Marla Malcolm Beck will continue as Bluemercury’s chief executive officer and president. Barry Beck will continue as Bluemercury’s chief operating officer.
The transaction is expected to be completed in Macy’s, Inc.’s fiscal first quarter.