The board of directors of Neiman Marcus Group Inc. has agreed to sell the upscale retailer for about $5.1 billion in cash to investment firms Texas Pacific Group and Warburg Pincus, Neiman Marcus said today.
Dallas-based Neiman Marcus said the sale to the two equity firms would help the retailer focus on growth while maintaining its traditional luxury merchandising strategy.
“They share our interest in the strong future of our company,” said Burt Tansky, president and CEO of Neiman Marcus. “Our customers, employees, and vendors should know that now, and following the completion of this transaction, it will be business as usual. We believe that our new partners will help us continue to focus on a business plan that is dedicated to luxury leadership, financial discipline, quality, and growth."
Neiman Marcus operates two divisions, its Specialty Stores segment, which is comprised of 35 stores and 14 clearance outlets under the Neiman Marcus brand, and two Bergdorf Goodman stores, both in New York. Its Direct Marketing segment contains retail web sites under the Neiman Marcus, Bergdorf Goodman and Horchow brands.
The retailer reported $98.5% million in Internet sales for the second quarter ended Jan. 31, a rise of 49% from $66.11 million in the year-ago period. By comparison, total Q2 revenue rose 7.7% to $1.13 billion from $1.05 billion, as Internet sales grew to 8.7% of total revenue from 6.1%.
Under terms of the deal, Texas Pacific and Warburg Pincus will acquire all of the outstanding Class A and Class B shares of Neiman Marcus for $100 per share. Goldman Sachs acted as financial advisor to Neiman Marcus in connection with the strategic review and this transaction. JP Morgan also acted as financial advisor to the board of directors of Neiman Marcus.
Simpson Thacher & Bartlett LLP acted as legal advisor to Neiman Marcus.
Neiman’s stock today traded at about $92.45, down about 6% from the previous close of $98.32.
Back...
