The Canada Pension Plan Investment Board and Los Angeles-based asset manager Ares Management LLP have confirmed their plans to buy the U.S. luxury retailer Neiman Marcus Inc. for $6 billion.
Founded in 1907, Neiman Marcus is one of the largest luxury retailers in the United States, with 79 stores under the Neiman Marcus and other banners, including 35 stores under the Last Call brand. It does not have any stores in Canada.
Private equity firms TPG Capital and Warburg Pincus bought the Dallas-based company for $5.1 billion in 2005. Neiman Marcus filed for an initial public offering of stock in late June.
A spokesman for the CPP Investment Board says Neiman Marcus has a strong market position with good growth potential.