Fashion retailer Gap Inc. (GPS: Quote) is said to buy luxury retailer Intermix Inc. for $130 million, according to The Wall Street Journal. The acquisition is the first in half a decade for Gap, which is coming off a string of rare fashion successes that increased prior year's sales and stock price.
Intermix doesn't produce its own clothes and has only about 30 stores in the U.S. and Canada, while the chain has relationships with designers, like Herve Leger, Yves Saint Laurent and Rag & Bone, from which Gap could benefit, reports added. Also, Intermix could expand quickly with the help of Gap's bigger balance sheet.
Moreover, Gap may double Intermix's store count, and later look for opportunities to expand the chain overseas.
by RTT Staff Writer
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