The Neiman Marcus Group, Inc. Acquires Kate Spade LLC
Download Deal Report As PDF| Date | Status | Stake Acquired | Deal Price | Deal Type | Currency Used |
| November 2006 | Completed | 44% | $59,400,000 | Acquisition of Remaining Interest | Cash |
| Target | Buyer |
| Deal Amount | |
| Deal Price | $59,400,000 |
| Enterprise Value (EV) | $134,000,000 |
| Financials for Target: Kate Spade LLC | Transaction Multiples | Transaction Multiples w/ Max. Contingency | |||
| Total Assets | N/A | EV / A | EV / A | ||
| Stockholder's Equity | N/A | EV / SE | EV / SE | ||
| Revenues 2006 | $84,000,000 | EV / R | 1.6x | EV / R | |
| Net Income (Loss) | N/A | EV / E | EV / E | ||
| Cash Flow | N/A | EV / CF | EV / CF | ||
| EBITDA | N/A | EV / EBITDA | EV / EBITDA | ||
| Operating Income (Loss) | N/A | EV / OI | EV / OI | ||
| Deal Notes |
| In April 2005, the minority investor in Kate Spade LLC exercised the put option with respect to the sale of the full amount of its 44% stake in such company to NMG. In October 2006, Neiman Marcus entered into an agreement to settle the put option whereby the company purchased the interest held by the minority investor for approximately $59.4 million. |
| Contingency Payments | |
| Has Contingency Payment? | No |
| Termination Fees | |
| Has Termination Fee? | No |
| Business Description for Target: Kate Spade LLC |
Kate Spade, LLC manufactures and markets apparel and accessories for women. The company's products include sweaters, tops, dresses, hats, scarves, pants, jackets, and shoes It also supplies handbags, coin purses, jewelry, gift cards, umbrella, cosmetics and cosmetic cases, hair clips, and sunglasses. The company was founded in 1993 and is based in New York, New York. As of December 2006, Kate Spade, LLC operates as a subsidiary of Lis Claiborne Inc. |
| Business Description for Buyer: The Neiman Marcus Group, Inc. |
The Neiman Marcus Group, Inc. is a privately-held luxury retailer with headquarter in Dallas, Texas. The Neiman Marcus Group is comprised of the Specialty Retail Stores division, which includes Neiman Marcus Stores and Bergdorf Goodman, and the Direct Marketing division operating as Neiman Marcus Direct. These retailers offer upscale assortments of apparel, accessories, jewelry, beauty, and decorative home products for the affluent consumer. The company operates Neiman Marcus stores across the United States and Bergdorf Goodman stores in Manhattan. The company also runs Last Call clearance centers. Neiman Marcus Direct, the direct-to-consumer business, conducts both print catalog and online operations under the Neiman Marcus, Bergdorf Goodman, Horchow, Last Call, and CUSP brands. Founded in 1907 by Herbert Marcus, Sr., Carrie Marcus Neiman, and Abraham Lincoln Neiman, Neiman Marcus is owned by private equity firms TPG Capital and Warburg Pincus. |
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