EXHIBIT 99.2
FOR IMMEDIATE RELEASE
THE NEIMAN MARCUS GROUP ANNOUNCES AGREEMENT TO
BE
ACQUIRED BY TEXAS PACIFIC GROUP AND WARBURG PINCUS LLC
FOR $100 PER SHARE OR APPROXIMATELY $5.1 BILLION
DALLAS, Texas, May 2, 2005 - The
Neiman Marcus Group, Inc. (NYSE: NMG.A, NMG.B) announced today that
its Board of Directors has approved a definitive agreement to sell
the Company to an investment group consisting of Texas Pacific
Group and Warburg Pincus LLC.
Under the terms of the agreement, Texas Pacific Group and Warburg
Pincus will acquire all of the outstanding Class A and Class B
shares of The Neiman Marcus Group for $100.00 per share in cash,
representing a transaction value of approximately $5.1 billion.
Each of the investors will own equal stakes in the company upon
completion of the transaction.
" We are very
pleased with the results of our strategic review," said Richard A.
Smith, Chairman of the Board of The Neiman Marcus Group. "This
transaction provides outstanding shareholder value and represents
an endorsement of the excellent performance of our entire
team."
Burt Tansky, President and Chief
Executive Officer of The Neiman Marcus Group, said, "We are excited
to announce this transaction, particularly given the strengths of
Texas Pacific Group and Warburg Pincus. They share our interest in
the strong future of our company. Our customers, employees, and
vendors should know that now, and following the completion of this
transaction, it will be business as usual. We believe that our new
partners will help us continue to focus on a business plan that is
dedicated to luxury leadership, financial discipline, quality, and
growth."
"We are delighted to be
partnering with Burt Tansky and the rest of the Neiman Marcus
management team. Together, we hope to build on their exceptional
track record of performance," said Jonathan Coslet, partner at
TPG.
Warburg Pincus Managing Director Kewsong Lee stated, "We are
pleased to have the opportunity to partner with this exceptional
management team. Neiman Marcus is the leading luxury retailer, and
we believe strongly in the continued growth of the company."
The Smith family, which owns a significant percentage of the equity
of the Company, has entered into a separate agreement to vote its
shares in favor of the merger.
Completion of the deal is contingent on regulatory review and
approval by the shareholders of The Neiman Marcus Group and is
expected to occur by November 1, 2005.
Goldman Sachs acted as financial
advisor to The Neiman Marcus Group in connection with the strategic
review and this transaction. JP Morgan also acted as financial
advisor to the Board of Directors of The Neiman Marcus Group in
connection with this transaction.
Simpson Thacher & Bartlett LLP acted as legal advisor to The
Neiman Marcus Group.
About The Neiman Marcus Group
The Neiman Marcus Group, Inc. operations include the Specialty
Retail Stores segment and the Direct Marketing segment. The
Specialty Retail Stores segment consists primarily of Neiman Marcus
and Bergdorf Goodman stores. The Direct Marketing segment conducts
both print catalog and online operations under the Neiman Marcus,
Horchow and Bergdorf Goodman brand names. Information about the
Company c
