DALLAS-Neiman Marcus Inc., the luxury department store chain based here, will be sold to Ares Management LLC and Canada Pension Plan Investment Board for $6 billion. According to the Dallas Business Journal, Fort Worth-based TPG Capital, Warburg Pincus LLC and Leonard Green & Partners LLP are selling the company, with the sale anticipated to be finalized during Q4.
The sellers acquired Neiman Marcus in 2005 for $5.1 billion. Bloomberg Businessweek reports that Ares and the pension fund will have equal economic interest in the company, while the chain's management retains a minority stake. The Bloomberg articles notes that the deal, which comes three months after Neiman Marcus filed registration for a $100 million initial public offering, likely ends prospects for that capital raise.
Neiman CEO Karen Katz will remain in her current position following the closing.
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