Dallas-based luxury chain Neiman Marcus has been sold for $6 billion for $6 billion by Ares Management LLC and a Canadian Pension Plan Investment Board. The two new owners will hold an equal economic interest in Neiman Marcus, and the company’s management including CEO Karen Katz will retain a minority stake. The transaction which is expected to close in the fourth quarter includes not only the 41 Neiman Marcus stores, but also two Manhattan-based Bergdorf Goodman stores and 36 discount Neiman Marcus outlets named Last Call. There is also an online division of the company that operates alongside these businesses.
This investment fits with our longstanding approach of accelerating growth in companies in the consumer and retail sectors,” said David Kaplan, senior partner and co-head of Ares. Its other retail and consumer investments include Floor & Decor, General Nutrition Centers, House of Blues, Maidenform Brands, Samsonite, Serta, Simmons, Smart & Final and 99¢ Only Stores.
The sale ends the retailer’s ownership by private equity firms TPG Capital and Warburg Pincus. The private equity companies had planned to sell shares to the public in an initial public offering, after buying the company for $5.1 billion in 2005. Neiman’s sales remain below their 2008 peak and many Americans, including well-heeled shoppers, are pulling back from apparel in favor of upgrading their cars and improving their homes.