Spanx Inc. announced a definitive agreement for a majority investment from funds managed by Blackstone, the global investment business. The firm has agreed to buy a majority stake in the women’s shapewear company at a valuation of $1.2 billion, with founder Sara Blakely maintaining a significant equity stake in the business.
Blakely, with its existing senior management team, will continue to oversee daily operations, and at closing, Blakely will become the executive chairwoman.
The company said the acquisition will enable Spanx to “accelerate its already rapid digital transformation and strong online presence in the e-commerce channel, expand its global footprint and fuel its commitment to product innovation, including expanding to new categories.” The companies intend to create an all-female Spanx board of directors aligned to help “empower women globally.”
“This is a really important moment in time for female entrepreneurs,” Blakely said. “I started this company with no business experience and very little money, but I cared the most about the customer and that gave me the courage to launch the company. At Spanx, we have always put the customer at the center 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… one butt at a time!”
Ann Chung, global head of consumer for Blackstone Growth (BXG), 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 honored 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.”
Chung continued: “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.”
Blackstone will make its investment in Spanx through its Blackstone Growth (BXG) and Blackstone Tactical Opportunities businesses. The transaction is subject to customary closing conditions.
Spanx was represented by Goldman & Sachs and Allen & Co. in the transaction, with legal representation from Cravath, Swaine and Moore. King & Spalding served as Blakely’s legal advisor. Blackstone’s financial advisor for the transaction was JPMorgan and its legal advisor was Simpson Thacher & Bartlett LLP.
Photo courtesy Spanx
