Wednesday September 11th, 2013 - 12:57PM
Neiman Marcus's owners have agreed to sell the luxury department store group to Ares Management and the Canadian Pension Plan Investment Board (CCPIB) for $6 billion, the New York Times has reported. The current owners are a private equity firms TPG and Warburg Pincus.
Neiman Marcus operates 79 stores across the country, including two Bergdorf Goodman stores in Manhattan, and the Last Call outlet stores.
Karen Katz, the chief executive of Neiman Marcus, said in a statement: "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 plan on investing meaningful capital into the business to ensure Neiman’s long-term position as the unparalleled leader in luxury retail,” David Kaplan, co-head of private equity at Ares, said in a statement.
According to the New York Times, Ares has had experience in the consumer sector, with previous investments in General Nutrition Centers, House of Blues and Serta and Simmons.
Ares and the Canada Pension Plan Investment Board will hold equal stakes in the company, with Neiman Marcus management retaining a minority stake. The deal is expected to close in the fourth quarter, according to reports.