Victoria's Secret takes lingerie business private at $1.1B valuation
L Brands Inc. is taking lingerie business Victoria's Secret private, selling a controlling stake to Sycamore Partners for $525 million and leaving personal-care business Bath & Body Works as a stand-alone public company.
The separation "provides the best path" to restoring profitability at Victoria's Secret and PINK, CEO Leslie Wexner said in a statement. L Brands, which he has led for decades, will retain a 45% stake in the lingerie businesses, which has an enterprise value of $1.1 billion, and Wexner will step down as CEO and chairman once the deal is completed.VICTORIA'S SECRET MODELS DEMAND END TO 'EGREGIOUS' ABUSE
"We believe there is a significant opportunity to reinvigorate growth and improve the profitability of Victoria's Secret," Sycamore's managing director, Stefan Kaluzny, said in the statement.
The transaction shines a spotlight on Bath & Body Works, which has "one of the strongest growth stories in retail," Lorraine Hutchinson, an analyst with Bank of America, told clients before the deal was announced, predicting that the chain could continue to deliver growth despite challenges for other brick-and-mortar retailers.
"Bath & Body Works has been able to generate its own traffic by capitalizing on strong replenishment demand and providing a constant stream of newness," she said. "Trial is crucial, especially for a business where scent and efficacy are so important."This story is developing. Check back for updates.
More News in business
Twist Bioscience Corporation [TWST] saw a change by 11.53% with the Thursday trading session, closing the trade at the price of $31.72. The company is holding 35.48M shares with keeping 29.61M floating shares. With the
Lumber Liquidators Holdings Inc (NYSE:LL) is in focus today, with the stock last seen trading 27% higher at $10.38, fueled by online speculation that the shares could keep rocketing higher. This price action has LL
The shares of Twist Bioscience Corporation (NASDAQ:TWST) has been pegged with a rating of Outperform by Evercore ISI in its latest research note that was published on May 31, 2019. Evercore ISI wasn't
The richest place in America has an annual household income of more than $500,000 for the first time ever, it has been revealed. Bloomberg on Thursday released its Richest Places annual index, and Atherton, California tops