Ares Management and Canada Pension Plan Investment Board have signed an agreement to acquire storied luxury chain Neiman Marcus for $6 billion.
The two private equity firms will acquire the storied retailer from its current owners, TPG and Warburg Pincus. Ares and CPPIB will hold an equal interest in the company, said a statement, with the company’s current management retaining a minority stake. The transaction is expected to close in the fourth quarter of 2013, subject to regulatory approvals.
Neiman Marcus currently has 79 stores—including 41 Neiman Marcus stores, two Bergdorf Goodman locations in Manhattan, and 36 Last Call outlet centers. It also sells online.
The statement included a nod to the company’s current management, and it called CEO Karen Katz “highly respected.”
Among Ares’ other retail holdings are Floor & Décor Outlets of America, Smart & Final Stores, and 99¢ Only Stores.
Neiman Marcus had been reportedly exploring a variety of options regarding its future. The company filed for an initial public offering in June.
It is not the only luxury brand to be sold recently. Saks Fifth Avenue was sold to HBC in July. At one point, there was talk of the two chains merging.
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