Neiman Marcus Agrees to $5.1 Billion Takeover Deal

Luxury retailer Neiman Marcus Group Inc said today (Monday) its directors had agreed a takeover deal with two private equity firms who will pay $100 per share, or a total of $5.1 billion, for the department store chain.

Buyout firms Texas Pacific Group and Warburg Pincus LLC will own equal shares in the firm.

"We believe that our new partners will help us continue to focus on a business plan that is dedicated to luxury leadership, financial discipline, quality, and growth," said Burt Tansky, President and Chief Executive Officer of The Neiman Marcus Group.

Completion of the deal is contingent on regulatory review and approval by the shareholders of The Neiman Marcus Group, and is expected to take place by November 1, 2005.

Neiman Marcus, operator of its namesake stores and more specialized Bergdorf Goodman chain, has had six straight quarters of double-digit sales increases at stores open more than a year. The company said it expects its same-store revenues to rise 5 - 6 percent in the third quarter.

The sale of Neiman Marcus is the latest in a series of mergers in the retail industry, following Federated Department Stores Inc's agreement to buy rival May Department Stores Co and the recent purchase of retailer Barneys New York by Jones Apparel Group Inc.