Neiman Marcus owners trouser $6bn after sale

City A.M. Reporter
UPSCALE American retailer Neiman Marcus is to be snapped up by a consortium of Ares Management and the Canada Pension Plan Investment Board, it was announced yesterday, snuffing out hopes of an initial public offering (IPO).

Current owners TPG Capital, Warburg Pincus and Leonard Green Partners sealed the sale yesterday in a deal that values the retailer at around $6bn.

Neiman registered for a possible IPO in July after earlier talks with potential buyers, including sovereign wealth funds, failed to meet the price expectations of its private equity owners, people familiar with the matter said at

the time.

Neiman returned to pre-financial crisis sales levels this year, reporting revenues of $4.5bn in the 12 months to 27 April, up 6.5 per cent from a year ago, and adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) of $623m.

The Dallas-based retailer, which operates 41 namesake department stores, Bergdorf Goodman and the lower-price outlet chains Last Call and CUSP, was taken private by TPG Capital and Warburg Pincus in 2005 for $5.1bn.