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TPG, Warburg in advanced talks to sell Neiman Marcus

9 Sep 2013

shopping bag_lrgAres Management and Canada Pension Plan Investment Board are reportedly in advanced talks to buy retailer Neiman Marcus from private equity firms TPG Capital and Warburg Pincus.

A deal could be announced as soon as this week and would mean that the company will not go ahead with its plans for an IPO, said Reuters, citing two people familiar with the matter.

The deal is expected to value the business at around $6bn, said one of the sources, adding that the terms have not been finalised and talks could still fall apart.

Last month Neiman Marcus hired a syndicate of banks to explore a potential IPO and asked Credit Suisse to identify alternative sales options.

In June AltAssets reported that TPG Capital and Warburg Pincus were nearing an overdue exit from the luxury retailer after the company filed to raise $100m through an initial public offering.

The buyout firms bought into Neiman for $5.1bn in 2005 ahead of fellow private equity firms including Blackstone, Bain Capital, Thomas H Lee Partners and KKR.

TPG holds about 41.5 per cent of the business according to an IPO filing with the US Securities and Exchange Commission, while Warburg controls about 43 per cent.

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