Going Private • Retail

aPriori Capital Partners, Warburg Pincus, TPG and Leonard Green & Partners Acquire Neiman Marcus

On May 2, 2005, private equity firms aPriori Capital Partners, Warburg Pincus, TPG and Leonard Green & Partners acquired retailer Neiman Marcus for 5.1B USD

Acquisition Context
  • This is aPriori Capital Partners’ 2nd, Warburg Pincus’ 4th, TPG’s 3rd and Leonard Green & Partners’ 4th transaction in the Retail sector.
  • This is aPriori Capital Partners’ 2nd, Warburg Pincus’ 5th, TPG’s 16th and Leonard Green & Partners’ 2nd largest (disclosed) transaction.
  • This is aPriori Capital Partners’ 22nd, Warburg Pincus’ 51st, TPG’s 43rd and Leonard Green & Partners’ 12th transaction in the United States.
  • This is aPriori Capital Partners’ 3rd, Warburg Pincus’ 7th, TPG’s 8th and Leonard Green & Partners’ 2nd transaction in Texas.
Investment Fate
  • Neiman Marcus was sold to a consortium of financial buyers in 2013 for 6.0B USD.
  • Neiman Marcus went bankrupt in 2020.
  • Neiman Marcus was sold to a strategic buyer in 2024 for 2.7B USD.

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M&A Deal Summary

Date May 2, 2005
Target Neiman Marcus
Sector Retail
Buyer(s) aPriori Capital Partners
Warburg Pincus
TPG
Leonard Green & Partners
Deal Type Going Private
Deal Value 5.1B USD

Target Company

Neiman Marcus

Dallas, Texas, United States
Neiman Marcus is a specialty retailer with online and offline operations. The Company's retail stores segment consists primarily of Neiman Marcus, Bergdorf Goodman and Last Call stores. The Online segment conducts both catalog and online operations under the Neiman Marcus, Bergdorf Goodman and Horchow brand names. Neiman Marcus was originally established in 1907 and is headquartered Dallas, Texas.
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Buyers Overview 4

Buyer

aPriori Capital Partners

Investor Investor Investor


Category Private Equity Firm
Founded 1985
PE ASSETS 2.0B USD
Size Large
Type Sector Agnostic
DESCRIPTION

aPriori Capital Partners (formerly DLJ Merchant Banking Partners) is a middle-market private equity firm focused on middle-market buyouts in the US and Europe. Sectors of interest include healthcare, retail, consumer, energy, business services, and industrial. aPriori was originally established in 1985 and has offices in New York and Los Angeles.


Deal Context for Buyer #
Overall 33 of 56
Sector: Retail 2 of 3
Type: Going Private 3 of 6
State: Texas 3 of 4
Country: United States 22 of 40
Year: 2005 4 of 9
Size (of disclosed) 2 of 12
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-03-15 Seabulk International

Ft. Lauderdale, Florida, United States

Seabulk International, Inc. is a provider of marine support and transportation services. Seabulk is principally engaged in three main businesses: offshore energy support, marine transportation and towing.

Sell $532M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-05-11 Tysers

London, United Kingdom

Tysers is a specialty commercial property & casualty insurance brokerage firm. Tysers serves as an intermediary between retail and/or wholesale insurance brokers to facilitate the placement of unusual, complex, or specialized coverages within the London market, notably to Lloyds of London, and global insurance markets. Tysers is headquartered in London, United Kingdom.

Buy -
Buyer

Warburg Pincus

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1966
PE ASSETS 83.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Warburg Pincus is a mega-sized, global private equity firm focused on investment opportunities across North America, Asia, and Europe. Warburg will consider investing at various company stages, from early-stage opportunities to distressed situations. Warburg Pincus is organized by industry groups. Verticals include financial services, healthcare, technology, media & telecommunications, energy, consumer & industrial, and real estate. Within financial services, Warburg will consider asset/wealth managers, banks, exchanges, financial technology, insurance, transaction processing, private banking, and specialty/consumer finance. Within healthcare, specific areas of interest include medical devices, healthcare services, and biotech/pharmaceuticals. Within technology/media/communications, Warburg targets software, media/internet/information, financial technology, telecom, business services, and systems/semiconductors. Within energy, specific areas of interest include oil/gas exploration, power generation/transmission, and alternative energy. Warburg Pincus raised its first fund in 1966 and is based in New York City.


Deal Context for Buyer #
Overall 80 of 493
Sector: Retail 4 of 13
Type: Going Private 1 of 13
State: Texas 7 of 40
Country: United States 51 of 242
Year: 2005 10 of 17
Size (of disclosed) 5 of 50
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-05-01 Caradon Plumbing Solutions

Hull, United Kingdom

Caradon is a pan-European heating business manufacturing and distributing an exclusive range of boilers and radiators in Europe, particularly in the UK, Netherlands, Belgium, Germany and Turkey.

Buy £227M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-06-13 MACH

Contern, Luxembourg

MACH is a hub-based mobile communications exchange. MACH solutions shorten providers' time to market for new mobile applications, optimize service delivery to the mobile end-user, and accelerate the settlement of inter-operator financial liabilities. MACH enables the efficient flow of mobile traffic, of service validation, delivery and billing information, and of settlement transactions.

Buy -
Buyer

TPG

Fort Worth, Texas, United States

Investor Investor Investor Investor


Category Private Equity Firm
Founded 1992
PE ASSETS 296.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

TPG Capital is a global, mega-sized private investment firm that manages a family of funds focused on private equity, real estate, venture capital, public equity and debt investing. TPG invests in opportunities across a broad range of industries and geographies. TPG generally seeks to invest in established businesses that can benefit from the Firm's operational experience and connections. Industries of interest include consumer, retail, healthcare, industrials, digital media, natural resources, energy, real estate, technology, and software. TPG was formerly known as Texas Pacific Group and was originally established in 1992 by David Bonderman, James Coulter and William Price. The Firm is based in Forth Worth, Texas with additional offices in Europe, Asia, and Australia.


Deal Context for Buyer #
Overall 59 of 453
Sector: Retail 3 of 13
Type: Going Private 6 of 40
State: Texas 8 of 36
Country: United States 43 of 299
Year: 2005 5 of 15
Size (of disclosed) 16 of 114
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-03-31 Lenovo Group

Quarry Bay, China

Lenovo Group is a provider of IT hardware. The Group engages primarily in the manufacturing and sale of desktop computers, notebook computers, mobile handsets, servers and peripherals. Lenovo Group was founded in 1984 and is based in Quarry Bay, China.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-05-05 Avidia

Mountain View, California, United States

Avidia is a privately-held biopharmaceutical company discovering and developing a new class of human therapeutic proteins. Avidia is engineering these Avimer(TM) therapeutics against multiple validated and novel targets to address a wide range of disease areas, including inflammation, oncology and neurology.

Buy -
Buyer

Leonard Green & Partners

Los Angeles, California, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1989
PE ASSETS 75.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Leonard Green & Partners is a mega-sized private equity firm that invests in established companies that are leaders in their respective markets. Leonard Green will consider investments in consumer and business services, consumer products, distribution, media, and retail. Typical transaction values for acquisitions are between $500 million and $2 billion, however, the firm is capable of closing transactions valued up to $5 billion. Types of transactions include public-to-private, recapitalizations of privately held businesses, growth capital, equity capital to facilitate acquisitions, turnarounds/restructurings, and acquisitions of divisions/assets from large corporations. Leonard Green & Partners was formed in 1989 and is based in Los Angeles, California.


Deal Context for Buyer #
Overall 12 of 108
Sector: Retail 4 of 19
Type: Going Private 3 of 14
State: Texas 2 of 18
Country: United States 12 of 100
Year: 2005 1 of 3
Size (of disclosed) 2 of 29
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-02-15 Phoenix Scientific

Fort Dodge, Iowa, United States

Phoenix Scientific, Inc. manufactures veterinary pharmaceutical preparations Toy balloons or balls, Dolls, Doll houses, Stuffed animals or puppets, Playhouses, Building blocks, Riding toys, Pull toys, Childrens science kits, Toy vehicles, Toy trains, Inflatable toys, Doll parts or accessories, Yo yos, Kites, Pogs, Kaleidoscopes, Pom poms, Pinatas, Boomerangs, Flying discs, Toy pails.

Sell $196M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-06-15 Tire Rack

South Bend, Indiana, United States

Tire Rack is a customer-direct supplier of tires, wheels and related accessories for passenger vehicles and light trucks in the United States. Tire Rack is also a distributor of replacement tires to independent installers. Tire Rack was founded in 1979 and is based in South Bend, Indiana.

Buy -