Neiman Marcus Acquired for $6 Billion

by Harry Sheff Sep 09, 2013

Neiman MarcusNeiman Marcus Group is being acquired by Ares Management LLC and Canada Pension Plan Investment Board (CPPIB) for $6 billion. The buyers released the news this morning with statements from its representatives and from Neiman Marcus management. If the deal goes through, Ares and CPPIB will be equal partners with the retailer’s management holding a minority stake.

A group led by Warburg Pincus and TPG Capital bought the luxury retailer in 2005 for $5 billion and tried to take it public in June.

“For the past eight years, TPG and Warburg Pincus have been valued partners whose investment has supported our growth and strengthened our brands,” said Neiman Marcus CEO Karen Katz. “In working through the transaction, I have been very impressed by the commitment of Ares and CPPIB to learning our business. I have great confidence that our customers, associates and vendor partners will share my enthusiasm that our new investors will help us pursue a business dedicated to luxury and fashion, attentive service and innovative marketing.”

“We are delighted to join with CPPIB as a long-term investor in Neiman Marcus Group,” said David Kaplan, a co-head of Ares. “We share a common vision with the company’s management team, led by its highly respected chief executive officer Karen Katz, and together, we plan on investing meaningful capital into the business to ensure Neiman’s long-term position as the unparalleled leader in luxury retail.”

André Bourbonnais, an SVP of private investments for CPPIB, added, “We believe the company’s strong market position, combined with an expected increase in U.S. luxury goods spending, provide attractive opportunities for future growth. We are excited to partner once again with Ares, a like-minded, long-term partner of ours.”

L.A.-based Ares Management has about $66 billion in capital under management. The private equity group has made investments in many consumer companies, including General Nutrition Centers, House of Blues, Samsonite and 99¢ Only Stores.

Canada Pension Plan Investment Board is the investment arm of the Canada Pension Plan, a public, earnings-based retirement plan that all working Canadians contribute to.

Dallas-based Neiman Marcus Group operates 41 Neiman Marcus Stores, two Bergdorf Goodman stores in Manhattan and 36 Last Call outlet stores.

2 Replies to “Neiman Marcus Acquired for $6 Billion”

  1. Pingback: Neiman Marcus Group Swings to $19.82 Million Q3 Profit | MR Magazine

  2. So far they have miscalculated most of , rather all of their retail ventures.
    As I see their operations , inner working , my observations are trial and errors.
    No vision, or any new ideas .
    They are beating a dead horse, still planning to work on old glory of Neiman , etc.
    They have too much money , and no body to monitor progress.

    Upper management has no clue .

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