The Canada Pension Plan Investment Board (CPPIB) and Ares Management have agreed to buy Neiman Marcus Group for US$6 billion from a group of investors led by TPB and Warbug Pincus.
The CPPIB and Ares will hold an equal economic interest in the retailer and the company’s management will retain a minority stake.
André Bourbonnais, CPPIB’s senior vice-president of investments, says this is an “excellent opportunity” to invest in the luxury retail space. “We believe the company’s strong market position, combined with an expected increase in U.S. luxury goods spending, provide attractive opportunities for future growth.
Based in Dallas, Neiman Marcus Group is one of the largest U.S. luxury retailers, comprised of 79 stores totalling more than 6.5 million gross square feet. The company operates 41 Neiman Marcus Stores, two Bergdorf Goodman locations in Manhattan and 36 Last Call outlet centres.
The transaction is expected to close in the fourth quarter of 2013, subject to regulatory approvals and other customary closing conditions.
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