Istithmar Reaches Definitive Agreement to Acquire Barneys
10/08/2007 00:34
PR Newswire
DUBAI, United Arab Emirates, August 9 /PRNewswire/ -- Istithmar, the leading Dubai based private equity and alternative
investment house successfully reached agreement to acquire luxury retailer
chain Barneys New York, at a final purchase price of US$942.3 million, after
negotiations came to a close yesterday.
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In a statement issued today, H. E. Sultan Ahmed Bin Sulayem, Executive
Chairman of Istithmar said, "We are excited to acquire Barneys New York.
Barneys is a unique global asset with incredible growth prospects within the
luxury market. We look forward to working with Barneys as both a financial
and strategic partner. We intend to grow the company in the US and in
international markets."
Elaborating on the transaction, Khaled Al Kamda, Vice Chairman of
Istithmar World, commented, "This investment will accelerate the growth of
Barneys' business by leveraging Istithmar's experience in the sector and
other investments worldwide."
David Jackson, CEO of Istithmar said, "Securing Barneys is indeed a major
win for Istithmar: boosting the brand strength of our retail portfolio, while
creating opportunities to maximize its value through the team's strategic
plans to enter new markets. Right from the start, we have embraced a
laser-sharp focus on this deal. Barneys is a quintessential brand, and we see
immense growth potential which we are confident of realizing in the
long-term."
Peter J Solomon Co. and Citigroup acted as M? advisors to Istithmar,
Cleary Gottlieb Steen & Hamilton LLP acted as legal advisor to Istithmar,
KPMG provided financial and tax advisory services and McKinsey acted as
strategic consultant. Citigroup is providing committed financing for the
acquisition.
About Istithmar:
Istithmar is a private equity and alternative investment house
headquartered in Dubai, the United Arab Emirates, with offices in Shanghai
and New York. Established in 2003, it is 100% owned by Dubai World which in
turn is wholly owned by the Government of Dubai. In the three years since its
inception, Istithmar has invested in over 30 companies in three sectors -
consumer, industrial and financial services - deploying in excess of $1.6
billion of capital. Istithmar's 'I' Investment Philosophy is based around
three core principles - Ideas, Inquiry and Integrity - and is the foundation
on which the firm has established a broad portfolio of highly successful
investments in the markets from North America and Europe to Asia and the
Middle East.
http://www.istithmar.ae
For further information, please contact: Hwee-Suan Ong or Mohamed Tahboub, PanGulf PR, Tel: +97150-786-2997, Fax: +9714-295-1027, E-mail: Hweesuan@batespangulf.com or mohamed@batespangulf.com