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Equity Firms Explore Selling Neiman Marcus

May 6, 2013 5:14 PM   By Jeff Miller
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RAPAPORT... Texas Pacific Group (TPG) Capital and Warburg Pincus may sell retailer Neiman Marcus or launch a public offering, according to unnamed sources quoted in the Houston Chronicle and other news outlets.  TPG and Warburg acquired Neiman Marcus in early October 2005 for $5.1 billion and took the luxury retailer private, according to previous Rapaport News coverage. It has been reported that the equity funds could price the retailer at $8 billion.

The Chronicle reported that the equity firms have interviewed banks and are close to hiring Credit Suisse Group AG to run the dual-track process. If TPG and Warburg don't find a buyer and demand for a public offering is weak, they could consider a dividend recapitalization, one of the people told the Chronicle.

Neiman Marcus no longer reports monthly sales data, but for the most recent reporting period -- its second fiscal quarter of 2013 that ended on January 31 -- the retailer's revenue rose 5.3 percent year on year to $1.4 billion and same-store sales increased 2 percent. Revenue in 2012  rose 8 percent year on year to $4.3 billion.

Tags: equity firms, Jeff Miller, Neiman Marcus, public offering, Retailer, sale
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