American lifestyle brand Lands’ End has agreed to enter into a joint venture with brand management firm WHP Global.
WHP Global will pay Lands’ End $300 million for all of its license agreements and a 50 per cent ownership stake. The deal will see WHP Global lead the global licensing strategy and brand expansion of the joint venture.
Lands’ End said it intends to use proceeds from the sale to, among other things, fully repay its outstanding term loan, which was approximately $234 million as of January 26.
“This joint venture represents a fantastic opportunity for Lands’ End and will enable an even brighter future for the company and brand,” Josephine Linden, chair of the Lands’ End board of directors, said.
“After carefully reviewing the full range of strategic alternatives available to the company, the board determined that this structure delivers Lands’ End stockholders superior long-term, risk-adjusted value by combining immediate balance sheet strength with retained upside and operational continuity. We look forward to working with WHP Global to capture the great opportunity ahead.”
Yehuda Shmidman, founder, chairman and CEO of WHP Global, said that Lands’ End has a “rich heritage” and “deeply loyal” customer base.
“We see significant opportunity to expand the reach of the Lands’ End brand both in the US and globally by leveraging WHP Global’s platform – which today spans 80-plus countries, 225-plus license partners, and, post-close, a portfolio generating more than $8 billion in global retail sales,” Shmidman added.
The deal is expected to be completed during the first half of this year.
