Istithmar Reaches Definitive Agreement to Acquire Barneys

    DUBAI, United Arab Emirates, Aug. 9 /CNW/ - 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


    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
    Peter J Solomon Co. and Citigroup acted as M&A 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.


For further information:

For further information: Hwee-Suan Ong or Mohamed Tahboub, PanGulf PR,
Tel: +97150-786-2997, Fax: +9714-295-1027, E-mail:

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