Neiman Brass to Keep Minding Store After Sale

DALLAS Neiman Marcus Group sees opportunities for continued growth under the ownership of two private equity firms that agreed to pay $5.1 billion for the luxury retailer. The buyers said they are not anticipating any post-sale changes in advertising or marketing strategy.

“All those kinds of decisions will be made by management,” said Owen Blacksilver, spokesman for the Texas Pacific Group that joined with Warburg Pincus for an even stake in the retail group. “We’re still six months away from closing on the acquisition.”

The retailer, which spent $30 million on ads as measured by Nielsen Monitor-Plus in 2004, does all of its advertising in-house, with a heavy emphasis on print.

NMG includes Bergdorf Goodman stores and the Horchow Collection. The direct marketing segment conducts both print catalog and online operations under the Neiman Marcus, Horchow and Bergdorf Goodman brand names.

Texas Pacific Group and Warburg Pincus will acquire all of the outstanding shares of The Neiman Marcus Group for $100 per share in cash, the companies said.

“Our customers, employees and vendors should know that now, and following the completion of this transaction, it will be business as usual,” said Burt Tansky, president and CEO of NMG. “We believe that our new partners will help us continue to focus on a business plan that is dedicated to luxury leadership, financial discipline, quality and growth.”

While other sectors in the retail market have suffered in an uncertain economy, the luxury segment has seen strong growth, analysts said.

NMG has had six straight quarters of double-digit sales increases at stores open more than a year, according to the company. The company said it expects same-store revenue to rise 5 percent to 6 percent in the third quarter.