New York, NY, United States (4E) – Neiman Marcus’ primary owners are in talks with a group led by Ares Management and a Canadian pension plan to sell the company for about $6bn, according to a person with knowledge on the matter on Sunday, a deal that could potentially hand the control of the department-store chain to new owners.
Neiman, which was acquired by private-equity firms TPG and Warburg Pincus LLC in a $4.9bn deal in 2005, has been seeking an outright buyer for the luxury retailer and at the same time trying to set up an initial public offering of the stock.
Earlier this year, Neiman called on sovereign-wealth funds to purchase the chain but to no avail, according to sources familiar with the matter.
Neiman’s growth prospects have been a concern for potential buyers. The company said sales for the 12-month period through April were at $4.5bn, slightly under Neiman’s revenue of $4.6bn in 2008, before the crisis. However, some analysts believe that Neiman could fetch as much as $6bn for the deal.
Sources said that the negotiations between Neiman’s owners and the group of investors lead by Ares are ongoing and could still fall apart.
In July, rival retailer Saks Inc. agreed to sell itself for $2.4bn to Toronto-based Hudson’s Bay Company, which owns Lord & Taylor and the Hudson’s Bay in Canada.