In the terms of the $6 billion deal, which was announced Monday, Ares and the Canadian Pension Plan Investment Board (CPPIB) would have equal stakes in the company, while Neiman's management would retain a minority stake.
CPPIB senior vice president André Bourbonnais told the Financial Post that "iconic" brands at Neiman Marcus swayed his decision.
“These iconic brands don’t really come on the market very often,” Bourbonnais said.
“We feel good about the price we paid. We feel good about the growth potential,” he added. “I don’t think we’re overlooking anything just because of the brand.”
“I have great confidence that our customers, associates and vendor partners will share my enthusiasm that our new investors will help us pursue a business dedicated to luxury and fashion, attentive service and innovative marketing,” Neiman chief executive Karen Katz said in a statement.
Ares, a Los Angeles-based management company, has previously invested in House of Blues and General Nutrition Centers.
“We plan on investing meaningful capital into the business to ensure Neiman’s long-term position as the unparalleled leader in luxury retail,” Ares said in a statement.
Neiman's previous owners, private equity firms TPG Capital and Warburg Pincus, had planned to take the retailer public with an initial public offering, but an expert told USA Today that they stood to gain more from the sale.
"This is a big win for them relative to an IPO," said Mark Cohen, a Columbia business school professor and former CEO of Sears Canada.
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