Us Luxury Department Store Giants Are All Bought By Canadian Group.

< p > following the acquisition of Saks, a luxury department store in July this year, by the Canadian Department Store Group's Hudson 's Bay ($2 billion 900 million) in cash (including debt), another well-known luxury department store Neiman Marcus group (Neiman Markus) finally found an investment institution willing to take over the whole market: Ares Management Co., Ltd. (Ares Management) and Canada Pension Plan Investment Committee (CPPIB).

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< p > according to the latest British news, the purchase price is expected to exceed 6 billion dollars.

The Neiman Marcus group, headquartered in Dallas, Dezhou, has 41 stores in the United States plus 2 luxury goods stores named Podolf Goodman (BergdorfGoodman) in New York.

In 2005, TPG and Warburg Pincus privatized Neiman Marcus group with 5 billion 100 million US dollars.

Neiman Marcus group, a luxury chain store, has gained a lot of capital for its future development in the international market. Today, the Neiman Marcus group, which has received a lot of money, said that it will invest more in the retail sector in the next 5 years.

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< p > < strong > trading time is thought-provoking < /strong > /p >

< p > despite the fact that the Neiman Marcus group has submitted an initial public offering (IPO) application to the SEC in June 24th this year, TPG and Warburg Pincus, the two largest private equity shareholders of Neiman Marcus group, have not given up the opportunity to seek suitable investment institutions as a whole, because only in this way can they withdraw more quickly and thoroughly from the large retail assets that have been held for 8 years.

Now they are finally willing to quit.

The Canadian pension plan investment committee, one of the recipients, has traditionally invested in private equity funds, but in recent years it is turning directly to projects funded by other investment institutions.

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< p > at present, the global uncertainties affect the private equity market badly. A group of retail companies that are waiting for listing may face the awkward period of IPO closure.

A number of retail groups including Neiman Marcus and Vince have applied for listing.

In particular, Neiman Marcus is facing a critical period of IPO.

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P obviously, ARIS management and Canada Pension Plan Investment Committee have invested a considerable amount of capital in this paction.

But how much of the new deal will pay for foreign debt remains unclear. After all, the NeimanMarcus group has $3 billion 900 million in foreign debt.

After the completion of the paction, Ares Management Limited and Canada Pension Plan Investment Committee control a majority stake in Neiman Marcus, but the specific holding data have not yet been disclosed.

In 2005, private equity group TPG and Warburg group injected $5 billion 100 million into Neiman Marcus, and now they are eager to allow investors to arbitrage.

As the owner of Neiman Marcus, TPG and Warburg Pincus have been pursuing "walking on two legs". While looking for IPO listing, they hope that the retail business will continue to break through.

At this point, the escalation of the chemical crisis in Syria led to a continuous decline in the stock market.

But most respondents insist that IPO is still the best choice for NeimanMarcus than this sale.

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< p > strong > $6 billion asking too much price? < /strong > /p >

The asking price of < p > Neiman Marcus is US $6 billion.

This news came out, < a href= "http://www.91se91.com/news/index_c.asp" > Saks < /a > group KKR &Co. cooperation to Neiman Marcus bid.

Subsequently, Neiman Marcus rejected the merger.

"There were some hundred million investors in the Middle East who stared at Neiman Marcus.

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< p > < --EndFragment-- > but they were hesitant after the second quarter of the retail business reported their earnings.

A former retail executive said, "Neiman is a unique brand, but the asking price of $6 billion is really too high."

A banker who did not want to be named also said, "Neiman is a unique asset, but it is not worth the price.

It may need to lower its expectations.

I have seen too many such pactions. For buyers, the most important thing is brand value and value-added space.

Neiman's brand value is a powerful backing, but there are too few buyers who can pay the price. "

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< p > news shows that in order to find the next home, TPG and WarburgPincus "turn every rock to the bottom."

The situation is quite different from what it was 15 years ago, when Burberry and Gucci did not open their stores to all parts of the world.

Another expert said: compared with the electricity providers and outlets, the growth space of retail sales such as Neiman is limited.

In recent years, Neiman Marcus's new stores are mainly located in the two tier cities of the United States.

Value added space may be the main factor that prevents Neiman Marcus from achieving its expected valuation.

This reason compels Neiman owners to try different ways of trading.

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"P > Neiman Marcus department store has long enjoyed a high reputation in the retail industry. The banking industry regards it as a special object.

But in today's stock market correction period, Neiman's appeal may be on the rocks: retail growth is slow, expenditure can not be reduced and capital gains tax increases, all of which are affecting private equity pactions.

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< p > > the way to take IPO is right.

The owner of a retail group needs cash flow, "an investor said." I don't know if the private equity will enter the retail group, but I think the public shareholders can provide cash flow. "

Financo chairman Gilbert Harrison (Gilbert Harrison) also said: "I believe that Neiman Marcus is more suitable for public offerings."

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< p > < a href= > http://www.91se91.com/news/index_c.asp > aris < /a > management limited liability company also invests in many other areas such as investing in health chain stores (GNC).

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< p > Ares management companies always invest in good projects, but the price they pay is much less than that of others. This is also hard to understand.

This year, other companies expressed strong interest in the acquisition of NeimanMarcus, many of which were more advantageous than ARIS, but finally failed to reach agreement on price and ended in failure.

A banker said it was difficult to foresee the outcome of the paction and considered Neiman Marcus a good asset with relatively low risk.

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< p > < strong > < a > href= > http://www.91se91.com/news/index_c.asp > luxury > /a > retail is still favored by investors. < /strong > /p >

The new owners of P Neiman Marcus have bet on the trend of the whole luxury goods.

Kaplan, a very experienced investor in retail and consumer space, has made some specific comments on the future development of Neiman Marcus group.

He mentioned that the new owners will continue to enhance the status of Neiman Marcus group and Bergdorf Goodman brand at the top of luxury Pyramid in physical shops, technology and other preferred investments, and said that although there are no specific plans, they can gain new opportunities worldwide through their fame.

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< p > Kaplan says that in the long run, this road will not be easy to go. But if you look at 5 to 10 years, the luxury market will be a prosperous sight, and the Neiman Marcus group will also have the opportunity to develop and have a place in the market.

In a regulatory document of the Neiman Marcus group IPO, the data show good prospects for the future luxury market.

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< p > although the luxury department stores seem to be nearly saturated in the US local market, investors believe that new growth points can still be found.

Today, buyers can get a good deal in an inexpensive financing environment and get some benefits from inflation.

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