Owners of Neiman Marcus sell luxury chain for US$6 billion
APNEW YORK--Ares Management and Canadian Pension Plan Investment Board announced Monday they are buying the luxury chain Neiman Marcus for US$6 billion. The two new owners will hold an equal economic interest in Neiman Marcus, and the company's management will retain a minority stake.
September 11, 2013, 12:11 am TWN
“We plan on investing meaningful capital into the business to ensure Neiman's long-term position as the unparalleled leader in luxury retail,” said David Kaplan, senior partner and co-head of the private equity group of Ares, based in Los Angeles.
The deal, which is expected to be finalized in the fourth quarter, would end control of the luxury retailer by private equity firms TPG Capital and Warburg Pincus. They bought the company for US$5.1 billion in 2005 during the booming luxury years when affluent shoppers scooped up US$5,000 handbags with abandon and then held onto it during the depths of the recession and recovery period.