HomeBlackstone buys majority stake in Spanx

Blackstone buys majority stake in Spanx

Black stone a company


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It buys a majority stake in Spanx Inc. , becoming the first outdoor company to put money into a company that revolutionized women’s underwear.

The two companies said the deal values ​​Spanx at $1.2 billion. Spanx founder Sarah Blakely will retain a significant stake in the company and will continue to oversee operations. You will become the CEO of the company when the deal closes.

Ms. Blakely, who founded the company in 2000 with $5,000 earned selling fax machines in her hometown of Clearwater, Florida, was inspired to create lingerie made of comfy hosiery when she couldn’t find anything to hide her underwear. A pair of cream colored pants.

She cut her legs off a pair of pantyhose with control, and the idea for Spanx was born. The product achieved immediate success in women, To become a famous brand Although the first 16 years of its existence have not been announced.

Spanx Underwear The owners of the company that produces Spanx plan to expand the business by intensifying marketing.


Photo:

Elizabeth Robertson / The Philadelphia Inquirer / TNS / Zuma Press

The company now makes other forms of activewear and apparel, as well as its signature line of underwear. Ms. Blakely said she wants to join Blackstone to continue expanding this product line and push into global markets.

“People have been asking me for 20 years when I will sell Spanx, and for 20 years I have said I will just know,” Ms Blakely said. “I work largely on instinct.”

Ms. Blakely, who has pledged for years to “defend women through products,” has worked with an all-women deals team at Blackstone, led by managing director Ann Chong. The female lawyers who worked on the deal were also women, and the firm has pledged to appoint an all-female board of directors.

“Sarah is an iconic organization and has built this brand that we consider a home brand,” said Ms. Chung, who oversees consumer deals for Blackstone’s growth business. “Most women in the United States today have some Spanx in their wardrobe.”

Ms Chung said Blackstone was drawn to Spanx’s digital prowess – the company gets two-thirds of its sales through its website – and to the value of the technology it uses to make its products. She said there is a great opportunity to expand the business through intensified marketing.

The Spanx deal is Blackstone’s latest move to support women-run businesses. The company invested in a

stutter a company ,

Run by Whitney Wolf Heard, which was released to the public earlier this year. Reese Witherspoon’s Hello Sunshine media company has also supported A deal was announced in August.

write to Miriam Gottfried in Miriam.Gottfried@wsj.com

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