Neiman Marcus accepts buyout

Luxury retailer Neiman Marcus said on Monday that it agreed to be taken private by a pair of investors for $5.1 billion, or $100 a share.

Texas Pacific Group and Warburg Pincus will acquire the outstanding Class A and Class B shares of Dallas-based Neiman Marcus Group for cash, giving the firms equal stakes in the company. The deal, widely anticipated on Wall Street, ends an auction process whose other bidders reportedly included Vornado Realty, Kohlberg Kravis Roberts, Bain Capital, Thomas H. Lee Partners, and The Blackstone Group.

The deal marks yet another acquisition in a flurry of consolidation in the retail sector, in which private investment groups have had a prominent role. However, unlike previous deals, which have involved struggling chains with competitive issues, Neiman Marcus is a retailer that many observers say is at the top of its game amid particular strength in high-end, luxury spending.

The Neiman Marcus Group, Inc. operates Neiman Marcus and Bergdorf Goodman stores, and print catalogs and online operations.

Warburg Pincus has been a leading private equity investor since 1971. The firm currently has approximately $13 billion under management and invests in a range of industries including information and communication technologies, financial services, healthcare, LBOs and special situations, media and business services, energy, and real estate. Warburg Pincus’ LBO practice has invested nearly $2 billion of equity across a range of companies in different industries, including Clondalkin, Knoll, Polypore, Telcordia, TransDigm, and UGS.