Gap continues to slim portfolio with sale of Intermix
American fashion group Gap Inc. announced on Tuesday that it has entered into an agreement to sell its Intermix womenswear brand to private equity firm Altamont Capital Partners as it pushes forward with efforts to streamline its portfolio.
According to the company, Altamont intends to acquire the entirety of the Intermix business, including all store leases, e-commerce and assets. The brand currently operates 31 stores in the United States and a dedicated e-commerce platform.
The announcement of the deal follows the completion of Gap’s sale of its Janie and Jack kidswear brand to Go Global Retail in April. The transactions are part of the San Francisco-based company’s “Plan 2023” strategy, through which the group intends to slim down its operations in order to be able to focus on growing its top-performing lifestyle brands, which include its namesake Gap label, Old Navy, Banana Republic and Athleta.
“We are committed to driving long-term, profitable growth for our shareholders and employees, while delivering unique product and experiences for our customers at scale,” explained Gap’s head of strategy, Sally Gilligan, in a release. “The sale of Janie and Jack and planned transaction of Intermix demonstrate how we are prioritizing our strategic focus and resources behind the growth and potential of Old Navy, Gap, Banana Republic and Athleta.”
Gap acquired Intermix for around $30 million in 2012. According to a company spokesperson cited by CNBC, the brand represented less than 1% of the group’s total annual sales of $13.8 billion in 2020.
BofA Securities, Inc. served as Gap’s financial advisor for the transaction with Altamont. The financial terms of the agreement have not been disclosed.
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