Monday, 25 July 2016
Last updated 6 hours ago
Sep 10 2013 | 10:11am ET
Private-equity giants TPG and Warburg Pincus have agreed to sell luxury retailer Neiman Marcus to a group led by a fellow p.e. firm.
Ares Management and the Canadian Pension Plan Investment Board will pay $6 billion for the company, which includes New York's Bergdorf Goodman and the Last Call outlet stores. The TPG-Warburg Pincus group paid $5.1 billion for Neiman in 2005, and had planned to take it public later this year if they could not find a buyer.
Ares and the CPPIB will own equal stakes in the retailer. Neiman's management will retain its minority stake.
"We plan on investing meaningful capital into the business to ensure Neiman's long-term position as the unparalleled leader in luxury retail," Ares p.e. co-head David Kaplan said.
The deal is expected to close in the fourth quarter.