logo
Share SHARE
FONT-SIZE Plus   Neg

Gap To Buy Privately Held Luxury Retailer Intermix For $130 Mln: WSJ Reports

Fashion retailer Gap Inc. (GPS: Quote) is acquiring privately held women's fashion boutique Intermix Inc. for $130 million as it plans to enter the all-important luxury market, the Wall Street Journal reported Wednesday.

Intermix only has around 30 stores in the U.S. and Canada, and doesn't produce its own clothes. But, Gap expects to benefit from the chain's relationships with designers, including Herve Leger, Yves Saint Laurent and Rag & Bone, the report noted. Intermix has sales of around $130 million a year.

As per the report, Intermix's private-equity owner, Goode Partners LLC, put its 40% stake in the retailer up for sale in October, following which the company's investment bankers started negotiations with Gap. Art Peck, president in charge of new brands at Gap, reportedly said that Gap plans to double Intermix's store count following the acquisition, then look for opportunities to expand the chain overseas.

Gap, parent of the Gap, Old Navy and Banana Republic brands, is testing out new brands and trying to expand overseas, mainly into markets in Europe and Asia, even though it is closing 20% of its North American namesake stores.

Intermix founder and CEO Khajak Keledjian, who will remain at the company as chief creative officer, stated, "We are the incubator with emerging brands, and we can help them out with collaborations."

The latest deal is Gap's first since it paid $150 million in 2008 for women's active apparel retailer Athleta. In 2006, the company started Piperlime, an e-commerce site that sells other brands such as Elizabeth and James and Trina Turk.

In November, the company once again raised its full year earnings outlook after reporting a 60 percent jump in third quarter profit helped by higher sales and improved margins.

Gap closed Wednesday's trading session at $31.37, up $0.33 or 1.06 percent. In the after hours trading, shares dropped 0.70 percent.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Online retail giant Amazon.com Inc. (AMZN) is reportedly in talks to buy luxury online fashion retailer Net-a-Porter. The news of acquisition was first reported by Women's Wear Daily, which said the deal would be completed for about 2 billion euros, indicating the biggest acquisition yet by Amazon.... Tim Cook, the CEO of tech giant Apple Inc., in an interview said he intends to give away all his wealth to charity. Cook, in an interview to Fortune, said he plans to donate all his wealth to philanthropic projects after paying for his 10-year old nephew's college education. According to Fortune,... Is it a 'personal life crisis' that led the Germanwings' co-pilot Andreas Lubitz to deliberately lowering the plane carrying 149 people to French Alps mountain? Police is investigating to find evidences to prove this suggestion.
comments powered by Disqus
RELATED NEWS
Trade GPS now with 
Follow RTT