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October 21, 2021

Blackstone to buy majority stake in womenswear brand Spanx

The acquisition is intended to fuel Spanx’s digital transformation and strengthen its presence in the e-commerce sector.

US-based global investment firm Blackstone has agreed to purchase a majority stake in womenswear brand Spanx .

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Spanx will use the proceeds from the investment to expedite its digital transformation and online presence in the e-commerce sector while creating new products for its customers in different categories.

The financial terms of the transaction have not been disclosed, but the deal values Spanx at $1.2bn.

Spanx founder Sara Blakely will continue to hold a significant equity stake in the business.

Once the deal closes, she will become the company’s executive chairwoman and will manage its daily operations alongside the existing senior management team.

Blackstone will invest in Spanx through its Blackstone Growth (BXG) and Blackstone Tactical Opportunities businesses.

BXG consumer global head Ann Chung said: “Sara is an iconic businesswoman who bootstrapped Spanx into not only a category creator and household name, but also a symbol of authenticity, confidence building and female empowerment.

“We’re honoured that Sara and her team have placed their trust in Blackstone as their partner of choice to further accelerate Spanx ’s digital transformation and growth and look forward to what the business will achieve with our full set of resources behind it.”

Blakely said: “At Spanx , we have always put the customer at the centre of what we do. I am as excited today for the future of Spanx as I was when I started it 21 years ago.

“Now together with Blackstone , we will have even more opportunity to further our mission of making the world a better place.”

The two companies plan to create an all-female Spanx board of directors in an effort to empower women worldwide.

Chung said: “On a personal level, I am deeply proud to have led an all-female Blackstone investment team in this partnership with Sara and her accomplished female senior management team.

“We’re also excited for Spanx to join Blackstone ’s growing investment portfolio of highly successful female-founded businesses.”

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What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
  • Macroeconomic and demographic environment
  • Consumer context
  • Industry environment
  • Competitive environment
  • Route to market
Interested to learn more about what to include in your IPO Industry Assessment report? Download our free whitepaper.
by GlobalData
Enter your details here to receive your free Report.