Luxury American retailer Neiman Marcus has been sold to a group including the Canadian Pension Plan Investment Board for about U.S. $6-billion.
Neiman Marcus is one of the largest luxury retailers in the United States, with 79 stores.
The chain reported $4.3-billion in sales last year.
A spokesman for the CPP Investment Board says Neiman Marcus has a strong market position with good growth potential.
“This is an excellent opportunity to invest in a leading omni-channel luxury retailer, operating two of the most iconic retail brands in the U.S.,” said Andre Bourbonnais, CPPIB’s senior vice-president for private investments.
There were reports in recent days that a deal was in the works.
CPPIB and Ares will own an equal economic interest in Neiman Marcus Group, which has been owned by a group of investors led by TPG Capital and Warburg Pincus.
A minority stake will continue to be owned by Neiman Marcus management.
“We are delighted to join with CPPIB as a long-term investor in Neiman Marcus Group, a leading luxury retailer with global brand recognition that attracts shoppers from all over the world,” said Ares chief executive Karen Katz.
“This investment fits with our longstanding approach of accelerating growth in companies in the consumer and retail sectors.”
The CPP Investment Board is a professional investment management organization based in Toronto that invests money not needed by the Canada Pension Plan to pay benefits. The CPP fund currently totals some $183.3 billion in assets.
Neiman Marcus is known for Christmas catalogues featuring extremely high end gifts and experiences. In 2012, the catalogue featured a walk-on role in the Broadway musical “Annie” for $30,000, as well as a one-of-a-kind sportscar for $354,000.