The Neiman Marcus Group’s Board of Directors has approved the sale of the Company to an investment group made up of Texas Pacific Group and Warburg Pincus.
The deal is valued at about $5.1 billion. Each investor will own an equal stake in the company once the transaction is complete.
“We are very pleased with the results of our strategic review,” said Richard A. Smith, Chairman of the Board of The Neiman Marcus Group. “This transaction provides outstanding shareholder value and represents an endorsement of the excellent performance of our entire team.”
Burt Tansky, President and CEO of The Neiman Marcus Group, said, “We are excited to announce this transaction, particularly given the strengths of Texas Pacific Group and Warburg Pincus. They share our interest in the strong future of our company. Our customers, employees, and vendors should know that now, and following the completion of this transaction, it will be business as usual. We believe that our new partners will help us continue to focus on a business plan that is dedicated to luxury leadership, financial discipline, quality, and growth.”
“We are delighted to be partnering with Burt Tansky and the rest of the Neiman Marcus management team. Together, we hope to build on their exceptional track record of performance,” said Jonathan Coslet, partner at TPG.
The deal which is expected to be complete by the first of November, must be approved by shareholders of The Neiman Marcus Group.
Goldman Sachs and JP Morgan have acted as financial advisors regarding the transaction.
Chris is a staff writer for murdok. Visit murdok for the latest ebusiness news.
