Originally published at www.seclive.com
Neiman Marcus, which was previously reported in Filings Digest June 25, 2013 for initiating the IPO process, has been sold to Ares Management and Canada Pension Plan Investment Group. TPG and Warburg Pincus, Neiman Marcus private equity owners, succeeded in finding a buyer for the company that would help its profitable gains become realized sooner. Neiman Marcus operates 75 stores and reported an 8.6% increase in revenue to $4.3B in fiscal year 2012. The $6B sale to the Canadian firms represents a $1.1B gross return on its purchase price for $4.9B in 2005. The luxury retail market is heating up, with the recent sale of Saks Fifth Avenue to Hudson's Bay, though many analysts predict Neiman Marcus is better positioned under the structure of Ares Management.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.