Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NEWTON, MA-Shareholders of Neiman Marcus Group overwhelmingly approved a $5.1 million buyout bid by a private equity group during a special meeting held Tuesday at the Marriott Hotel in Newton, MA, where the chain’s controlling shareholders, the Smith family, are located.

Only a handful of shareholders representing about 74.3% of the total number of outstanding shares were on hand for the vote.

Under the terms of the agreement, shareholders in the upscale retailer’s stock will get $100 per share as part of the buyout. According to a regulatory filing, the buyers will retain the retailers top management team and have offered executives a chance to convert a portion of their current equity interests into equity in the surviving company. The merger is expected to be completed by the end of the year.

The Dallas-based retailer announced in May that an entity owned by a group of private equity funds including Warburg Pincus LLC, of New York, and Texas Pacific Group, of Fort Worth, TX, had agreed to pay $5.1 billion for Nieman’s, which owns 36 upscale stores under its flagship name and two stores under the Bergdorf Goodman banner. The company’s operations also include Neiman Marcus Direct, which handles the firm’s catalogue and online operations.

Shortly after Neiman’s announced the deal, the NECA-IBEW Pension Fund filed a complaint in federal court in Dallas claiming that the buyout did not give enough value to the fund and to other shareholders in the company. That lawsuit is still pending.

Texas Pacific, which has more than $20 billion under management, counts among its investments Petco, J.Crew, Burger King and America West, among others. Warburg Pincus, which invests in a variety of industries including real estate, business services, media and health care, has about $13 billion under management.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.