Spanx, an American shapewear company, is worth USD1.2 Billion after entering a definitive agreement for a majority investment from funds managed by Blackstone. The companies have yet to disclose the amount Blackstone paid for its stake.
“This is a really important moment in time for female entrepreneurs,” said Spanx founder Sara Blakely. Nevertheless, Blakely is set to retain a “significant” equity stake in the company and become its executive chairwoman.
“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,” Blakely said in a statement Wednesday.
The deal will allow Spanx to increase its online presence, its product line as well as “expand its global footprint,”. According to Blakely, the company is looking to develop other apparel such as denim, with the hope of making all clothing comfortable for women.
Spanx is prepared to continue to grow its direct-to-consumer arm, reducing its reliance on discount retailers and other wholesale partners. On average, direct-to-consumer sales are more profitable and offer the ability to connect with consumers.
“There aren’t very many brands that have been able to successfully make that transition,” Ann Chung, Blackstone’s global head of its consumer division, said in an interview Friday.
“What we really saw was that the consumer was following the company and the brand … whether they were putting shapewear out, or leggings out, or jeans out, and they were following all the products and being very loyal,” Chung said.