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Lands’ End Strikes $300 Million IP Joint Venture With WHP Global

The cash infusion lets the retailer erase a $234 million term loan.

Overview

  • WHP Global will pay $300 million for a 50% stake in a new entity that will hold Lands’ End trademarks and related intellectual property.
  • Lands’ End will license back the brand under a long-term agreement with guaranteed minimum royalties starting at $50 million in the first year.
  • The company keeps control of its direct-to-consumer and B2B operations as WHP leads global licensing through a platform spanning 80+ countries and 225+ partners.
  • WHP plans a tender offer for up to $100 million of Lands’ End shares at $45 per share, which could leave it holding up to about 7% of the stock.
  • In certain WHP monetization events, Lands’ End may exchange its JV interest for WHP equity, and both the JV and tender remain subject to customary closing conditions.