Neiman Marcus Files IPO to Raise $100 Million

NeimanMarcus4_lgDallas—Neiman Marcus is out to sell another top name in fashion—its own. Today, Neiman Marcus Inc., which operates 41 Neiman Marcus and Bergdorf Goodman, filed for an initial public offering up to $100 million.

Neiman Marcus had been taken private in 2005 in a $5.1 billion deal by its private equity owners TPG Capital and Warburg Pincus LLC. The number of shares to be offered and at what price wasn’t disclosed in the filing. The company said in the prospectus that it won’t receive any proceeds from the sale because its selling shareholders are selling the shares.

The company is in good financial standing, having recently reported earnings were up 5.7% to $3.53 billion for the nine months ended April 27. Comparable store sales rose 4.8%.

An IPO was just one of the options rumored for Neiman Marcus in the last few weeks.

Another scenario had Kohlberg Kravis Roberts taking a stake in Neiman Marcus and buying its rival Saks Inc. and then merging them. However, Neiman Marcus owners reportedly put the kibosh on that happening.

Nor does the IPO mean that Neiman Marcus Inc. still might be sold. Some analysts speculate that TPG and Warburg Pincus could be operating under a “dual track” strategy whereby they could sell the company while offering an IPO

Reuters noted, in fact, that Warburg last month agreed to Bausch & Lomb Holdings Inc. to Valeant Pharmaceuticals International for $8.7 billion after it had registered it for an IPO

The offering is handled by Credit Suisse.

 

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Jeff Prine

Jeff Prine, Editor at Large, Accessories Magazine
Jeff returns as a regular contributor to Accessories magazine. Initially Jeff worked as senior editor at Accessories more than 20 years ago and his love of the industry has followed him until present. Since his tenure here, Jeff has continued to report jewelry, watch and other luxury goods trends as executive editor at Modern Jeweler magazine, fashion director at Lustre, and as contributor on products and trends for consumer and trade publications and websites. In addition to his editorial experience, Jeff also served as an adjunct instructor for accessories merchandising at Fashion Institute of Technology. jeffp@busjour.com