(September 10th, 2013) It has been announced that Ares Management and a Canadian pension plan purchased Neiman Marcus for unprecedented six billion dollars, constituting the most expensive sale ever transacted in the luxury department store sector.
With respect to the purchase, co-head of private equity at Ares, David Kaplan, has said "We plan on investing meaningful capital into the business to ensure Neiman's long-term position as the unparalleled leader in luxury retail,"
Neiman Marcus is currently owned by a group of private equity investors led by TPG and Warburg Pincus, who purchased it for $1.5 billion in 2005. They intended on going public with the chain, if no potential buyers came forward at their asking price of six billion dollars.
Karen Katz, CEO of Neiman Marcus, is optimistic about the move and says that "I have great confidence that our customers, associates and vendor partners will share my enthusiasm that our new investors will help us pursue a business dedicated to luxury and fashion, attentive service, and innovative marketing."