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DALLAS-The Neiman Marcus Group Inc.'s planned acquisition by an investment group consisting of Texas Pacific Group and Warburg Pincus LLC will be complete by October. The acquisition, approved by Neiman's shareholders in August, is valued at nearly $5.1 billion.

As part of the acquisition, Neiman shareholders will receive $100 per share in cash from the Texas Pacific Group, based in Fort Worth, and the New York City-headquartered Warburg Pincus. Texas Pacific has previously invested in J. Crew, Petco, Burger King Corp., Continental Airlines and Metro-Golden-Mayer while Warburg Pincus has interests in health care, media, technology and energy companies.

In a related move, Kate Spade LLC, of which Neiman Marcus owns 56%, has started an evaluation of future "strategic alternatives" that could possibly include the sale of the company, which designs, manufactures and sells handbags, stationery, shoes, glasses, books and a home collection. "At this stage in our growth, it makes good business sense for the company to explore all options available," Kate Spade LLC CEO and creative director Andy Spade said in a press release.

Neiman Marcus has held an interest in Kate Spade LLC since 1999 when it purchased a majority stake from Alex Noel Inc. Founded in 1993, Kate Spade LLC operates 20 boutiques in the US and nine in Asia.

Neiman Marcus has 35 stores, 15 clearance centers and two Bergdorf Goodman stores. The retailer is under construction on its first stores in San Antonio and Boca Raton, FL, both of which are slated to open this year.

The luxury retailer ended its fiscal year with a profit of $34 million or 69 cents per diluted share, representing a 67% increase over the $21 million or 42 cents per diluted share for the same period last year. During the fourth quarter, Neiman Marcus reported total revenues of $851 million versus $784 million in the prior year, an increase of 9.6%.

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$5B Neiman Buyout Will Close by October

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