Neiman Marcus sold for 6 billion dollars

US luxury retailer Neiman Marcus will have not one but two

new owners soon. Los Angeles-based investment advisor Ares Management and global investment management organization Canadian Pension Plan Investment Board (CPPIB) announced yesterday that they will buy the upscale department store chain for 6 billion US dollar and will hold an equal economic interest.

"We plan on investing meaningful capital into the business to ensure Neiman's long-term position as the unparalleled leader in luxury retail," confirmed David Kaplan, senior partner and co-head of Ares.

The deal is expected to close in the fourth quarter when the current owners TPG Capital and Warburg Pincus will hand over the reins. The two private equity firms bought Neiman Marcus for 5.1 billion US dollar in 2005 during the luxury boom years. During the following eight years, luxury sales slowed down due to the global recession and TPG and Warburg Pincus waited out the recovery period before putting the luxury retailer on the market.

The announcement follows the sale of one of Neiman Marcus’ competitors just over a month ago: Luxury retailer Saks was aquired by Hudson’s Bay Company, which operates department store chains Lord & Taylor in the United States and Hudson’s Bay in Canada, for 2.9 billion US dollar in late July.