MDK Global Advisors analysts reported that Neiman Marcus, a luxury retail chain, agreed to be sold for $6 billion to a group led by Ares Management and a Canadian pension plan. The private equity owners of Neiman Marcus, including TPG and Warburg Pincus, had been looking for a buyer ahead of an IPO planned for later in the year. The sale of Neiman Marcus is the latest deal in the luxury retail industry, following Hudson Bay's $2.4 billion purchase of Saks Fifth Avenue earlier in the year. Ares Management has experience investing in consumer companies and said it plans to invest meaningfully in Neiman Marcus to ensure its long-term leadership in luxury retail.

1. Head Office: Level 31 Taipei Nanshan Plaza Songren Road 100, Xinyi District, Taipei, Taiwan (110)
+886 2 7741 4086
ENQUIRIES@MDKGLOBALADVISORS.COM
WWW.MDKGLOBALADVISORS.COM
PRESS RELEASE
TAIPEI, TAIWAN | 09 SEPTEMBER 2013
MDK GLOBAL ADVISORS SAY NEIMAN MARCUS SELLS FOR $6 BILLION
According to analysts at MDK Global Advisory, the owners of the Neiman Marcus luxury chain of stores committed on Monday to
sell in a USD 6 billion deal to a group headed by Ares Management and a Canadian pension plan.
“The owners, a consortium of private equity firms headed by TPG and Warburg Pincus, have been searching for a Neiman buyer
ahead of an initial public offering expected later in the year,” commented Su Tai, Research Director at MDK Global Advisors. “If
they had not found a buyer willing to invest the expected USD 6 billion, they were ready to go ahead with the public offering,”
she added.
The sale is the latest acquisition in the luxury department store industry. Hudson Bay, Canada's most prominent department
store, paid USD 2.4 billion for Saks, a rival to Neiman, earlier this year.
Neiman Marcus runs 79 outlets throughout the country, including two Manhattan-based Bergdorf Goodman stores, and the Last
Call outlet stores. Recent years have seen sales recover. Last year the company posted sales of USD 4.3 billion, compared to
USD 3.6 billion in 2009.
"I am very confident that our customers, associates and vendor partners will share my excitement that our new investors will
help us pursue a luxury and fashion dedicated brand, attentive service and innovative marketing," Karen Katz, Neiman's chief
executive, said in a statement.
Ares, one of Neiman’s new owners, has experience in the consumer sector, with previous investments in General Nutrition
Centres, House of Blues and the mattress companies Serta and Simmons. An asset manager based in Los Angeles, Ares has
about $66 billion under management.
“We plan on investing meaningful capital into the business to ensure Neiman’s long-term position as the unparalleled leader in
luxury retail,” David Kaplan, co-head of private equity at Ares, said in a statement.
Ares and the Canada Pension Plan Investment Board will own equal shares in the company, with Neiman Marcus management
maintaining a minority interest. The buyers said that they expect the sale to be completed in the fourth quarter.
“For TPG and Warburg Pincus, which paid about $5.1 billion for Neiman in 2005, the sale is a successful exit, especially as
spending on luxury goods has faltered in the wake of the recession,” commented an Executive Researcher from MDK Global
Advisors.
Credit Suisse consulted Neiman, and the company sought legal advice from Cleary Gottlieb Steen & Hamilton. Ares and the
Canada Pension Plan is represented by RBC Capital Markets and Deutsche Bank, with legal advice by Proskauer Rose and
Latham & Watkins. All three banks provide financing for the purchase. The Canada Pension Plan has sought legal advice from
law firm Toyrs.
© MDK Global Advisors