Neiman Marcus has agreed to be sold to a group of private equity firms for $6 billion. Fox Business reports
that the luxury retailer is being passed from one group of private equity firms to another. Ares Capital (ARCC) and Canada Pension Plan Investment Group (CPPIB) will acquire Neiman Marcus from TPG and Warburg Pincus. The deal is expected to close in the fourth quarter of 2013.
Andre Bourbonnais, CPPIB's senior vice president of private investments, said in a statement, "This is an excellent opportunity to invest in a leading omni-channel luxury retailer, operating two of the most iconic retail brands in the U.S.. 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."
Neiman Marcus had also been considering plans
for an IPO and had filed a registration statement. The retailer was also keeping its options open for a sale at the same time. Forbes says
Neiman Marcus avoids an IPO with the $6 billion sale.