Investment Group Buys Neiman Marcus for $6 Billion
An investment group led by Ares Management and the Canada Pension Plan Investment Board will buy Neiman Marcus for $6 billion.
The retailer, which operates 41 Neiman Marcus stores, two Bergdorf Goodman locations, 36 Last Call stores and six Cusp stores, is being sold by a group of private equity investors led by TPG and Warburg Pincus. The TPG-Warbug Pincus consortium acquired Neiman Marcus in 2005 for $5.1 billion.
Not much will change for customers of the Dallas–based luxury retailer, executives said. The new owners plan to invest money in stores and technology to help the company grow.
"Our new investors will help us pursue a business dedicated to luxury and fashion, attentive service and innovative marketing," Karen Katz, the chief executive of Neiman, said in a press release.
Ares currently has $66 billion in assets under management, including General Nutrition Centers, House of Blues, and the Serta and Simmons mattress companies.
The deal is expected to close in the fourth quarter of 2013.