CPPIB and Ares Management Buys Neiman Marcus

cloudsThe Canadian public pension plans do not fear direct investments. Earlier, the Ontario Teachers’ Pension Plan (OTPP) was involved in the Hudson’s Bay Company acquisition of Saks Inc.

The Canada Pension Plan Investment Board (CPPIB) and Ares Management LLC through their affiliates have signed an agreement to acquire Neiman Marcus Group LTD Inc. for a price tag of US$ 6 billion. They are buying the Dallas-based luxury retailer from a group of investors led by Warburg Pincus and TPG. Back in 2005, Warburg Pincus and TPG bought Neiman Marcus through a leverage buyout for US$ 5.1 billion. CPPIB and Ares Management will hold equal economic interests in Neiman Marcus. Company management at Neiman Marcus will retain a small minority stake.

Credit Suisse acted as financial advisor to Neiman Marcus Group. RBC Capital Markets and Deutsche Bank Securities Inc. acted as financial advisors to Ares Management and CPPIB.

This deal is subject to regulatory approvals.



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