Don’t Mess with Marcus
By George Anderson
A number of years back, the Texas Department of Transportation came up with an anti-littering campaign for the state’s highways that used the slogan: “Don’t Mess with Texas.”
Now that Texas Pacific Group and Warburg Pincus have officially gained control of luxury retailer Neiman Marcus, the two private equity firms are promising not to mess with the iconic Texas retailer.
Kewsong Lee, a managing director and leader of Warburg Pincus’ global LBO group, told The Dallas Morning News: “We haven’t changed one thing (referring to the retailer’s business plan). We don’t see a need to put a ‘stamp’ on the company other than to let management keep doing what it’s doing. If you’ve got a good thing going, why mess with it?”
Jonathan Coslet, a partner at Texas Pacific Group echoed Mr. Lee’s confidence in a released statement. “We’re delighted to be investing with the Neiman Marcus management team. Their success and leadership in the luxury retail sector is unmatched. Under their direction and through the efforts of more than 15,000 associates, Neiman Marcus continually offers an unparalleled shopping experience.”
Burt Tansky, president and CEO of The Neiman Marcus Group, signed a new five-year deal to continue leading the company.
“Our new partners share our vision of serving the luxury consumer with distinctive merchandise and outstanding customer service, continuing the nearly 100-year tradition of Neiman Marcus,” said Mr. Tansky. “We are pleased with the successful outcome of this transaction.”
Moderator’s Comment: Is Neiman Marcus essentially recession or other economic calamity proof? What challenges and opportunities are there before Neiman
Marcus? Where do you expect the company to go under private ownership?
The deal for Neiman Marcus involves the owners taking on a heavy debt load. It’s logical to think that a sale of some assets might be in the offing but
when asked that question, Kewsong Lee said, “We will de-leverage as we grow.” –
George Anderson – Moderator
- Texas Pacific Group and Warburg Pincus Complete Acquisition of The Neiman Marcus Group, Inc. – Neiman Marcus
Group, Inc./Business Wire
- Neiman Marcus passes into new hands – The Dallas Morning