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RAPAPORT... NM Mariposa Holdings Inc. and Mariposa Merger Sub. LLC, affiliates of Ares Management LLC and the Canada Pension Plan Investment Board (CPPIB), completed the $6 billion acquisition of luxury retailer Neiman Marcus Group Ltd. Inc. The transaction was originally announced on September 9. “We are very pleased with the successful outcome of this transaction,” said Karen Katz, Neiman Marcus Group's CEO. “We look forward to partnering with Ares Management and CPPIB. We believe the future for Neiman Marcus Group is bright.”
The purchase agreement included a purchase price of $6 billion, a portion of which would be used at the closing to repay all amounts outstanding under the retailer's existing senior-secured credit facilities. The company’s currently outstanding 7.125 percent senior debentures due in 2028 were expected to remain outstanding immediately following the closing of the transaction.
Earlier this month, Neiman Marcus reported that its revenue rose 11.3 percent year on year to $1.119 billion for the fourth fiscal quarter that ended on August 3. Comparable-store sales rose 5.4 percent, though a hard total was not provided for this measure. Earnings jumped to $2.88 million compared with a loss of $11.1 million. Merchandise inventory grew 8.4 percent to $1.019 billion.
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