Neiman Marcus agrees sale to private equity bidders
$5.1bn deal for upmarket department store group
US department store chain Neiman Marcus has agreed a $5.1bn sale to two private equity firms.
Neiman Marcus, which appointed Goldman Sachs to advise on a potential sale in March, is selling equal stakes to Texas Pacific Group and Warburg Pincus.
Company chairman Richard Smith, whose family owns a significant stake in the luxury goods specialist, said: “We are very pleased with the results of our strategic review. This transaction provides outstanding shareholder value and represents an endorsement of the excellent performance of our entire team.”
The company operates 35 Neiman Marcus Stores across the US and two Bergdorf Goodman stores in Manhattan. It also has a chain of clearance outlets, Last Call, and the Neiman Marcus Direct home shopping operation.
The management team, led by chief executive Burton Tansky, is expected to stay with the business. The group has seen strong same store sales growth across the past two years, despite a tough climate for luxury retail, and expects same-store revenue to rise by 5 per cent to 6 per cent in the third quarter.
