Ares and CPPIB close to buying luxury retail chain Neiman Marcus for $6 bn

Luxury retail chain Neiman Marcus Inc is close to being sold to Ares Management and the Canada Pension Plan Investment Board (CPPIB) for around $6 billion, The Wall Street Journal yesterday reported, citing people familiar with the matter.

After waiting for several months for a buyer, Neiman Marcus, private-equity firms TPG Capital and Warburg Pincusits majority-owners, are in the final stages of negotiations to sell Neiman Marcus to Ares Management and the CPPIB, for around $6 billion, the report said.

Earlier in 2005, TPG had teamed up with Warburg Pincus and Leonard Green & Partners to acquire Neiman Marcus for $4.9 billion.

TPG and Warburg Pincus had in June filed to take Neiman public this spring, but also started looking at an outright sale in order to finalise a deal more quickly. Interested suitors included Ares and the CPPIB, CVC Capital Partners, and KKR & Co.

Dallas, Texas-based Neiman Marcus Group comprises the Specialty Retail Stores division, which includes Neiman Marcus Stores and Bergdorf Goodman, and the on-line business, Division.

Both units offer upscale assortments of apparel, accessories, jewelry, beauty and decorative home products to affluent consumers.

The company operates 41 Neiman Marcus Stores across the US and two Bergdorf Goodman stores in Manhattan. It also operates 33 Last Call clearance centers.

Its upscale On-line retailing operation conducts both print catalog and online operations under the Neiman Marcus, Horchow, Bergdorf Goodman and Last Call brand names.

The chain had sales of $4.3 billion last year.

Ares and CPPIB had teamed up in 2011 to acquire a majority stake in 99 Cents Only Stores for $1.6-billion.