TPG Capital, Warburg Pincus explore sale or IPO of luxury retailer Neiman Marcus
07 May 2013
US private equity firms TPG Capital and Warburg Pincus are exploring a sale or public offering of luxury retailer Neiman Marcus Group Inc, Bloomberg reported, citing two people familiar with the matter.
The move comes eight years after the PE firms acquired Dallas-based Neiman Marcus in a $5.1 billion deal.
The PE firms have interviewed banks and are close to hiring Credit Suisse Group AG to run the dual-track process, the report said and added that the owners are seeking about $8 billion for the company.
Founded in 1904, The Neiman Marcus Group comprises the Specialty Retail Stores division - which includes Neiman Marcus Stores and Bergdorf Goodman - and the On-line Division.
Neiman Marcus offers upscale assortments of apparel, accessories, jewelry, beauty and decorative home products, which are targeted to the affluent consumer.
The company operates 41 Neiman Marcus Stores across the US and two Bergdorf Goodman stores in Manhattan. It also operates thirty three Last Call clearance centers.
Neiman Marcus's fiscal second-quarter net income was $40.4 million on revenues of $1.36 billion. The company is holding debt of $2.71 billion, according to data compiled by Bloomberg.