Bidding for Neiman Marcus Draws to a Close

Three private equity partnerships are expected to submit bids today for Neiman Marcus, between an initial range of $95 to $105 a share. Business Week reports Neiman shares broke the $100 barrier for the first time ever.

The three groups are Bain Capital with Kohlberg, Kravis, Roberts; Blackstone and Thomas H. Lee; and Texas Pacific Group with Warburg Pincus. A fourth partnership of Apollo Management and Leonard Green & Partners pulled out earlier.

The deal is valued at around $4.6 billion to $5.1 billion, a premium of more than 25% to Neiman's closing price of $74.75 on March 15, the day before the company announced it was contemplating a sale. Neiman's credit card business is expected to be sold off separately, and has received four bids by itself. Neiman has been rated as the top luxury retailer and its $555 per square foot sales productivity (subscription required) outpaces all of its peers.

Goldman Sachs advised Neiman Marcus on the transaction (registration required).