"Under the agreement, Lands' End contributes its intellectual property, including trademarks and existing license agreements, to a new 50/50 joint venture. WHP Global will pay $300 million in cash for a 50% controlling stake. Lands' End will then enter a long-term license agreement with the JV to operate its core direct-to-consumer and B2B businesses, with the license exclusive for core products and non-exclusive for other categories."
"The JV will pay Lands' End guaranteed minimum royalties starting at $50 million in the first year, with provisions for subsequent years. Excess cash from the JV, after maintaining a minimum balance, will be distributed quarterly to both partners. WHP Global will lead global licensing efforts and brand expansion using its network spanning more than 80 countries and 225 license partners. The deal is expected to close in the first half of 2026, pending regulatory approvals."
Lands' End announced a joint venture with WHP Global that transfers trademarks and existing licenses to a new 50/50 JV. WHP will pay $300 million in cash for a 50% controlling stake, with most proceeds used to repay an approximately $234 million term loan and the remainder for general corporate purposes. Lands' End will operate core direct-to-consumer and B2B businesses under a long-term license, with guaranteed minimum royalties beginning at $50 million in year one and quarterly excess cash distributions after a minimum balance. WHP will lead global licensing and brand expansion and will launch a contingent tender offer for up to $100 million at $45 per share. The deal is expected to close in the first half of 2026, and investors must evaluate whether the transaction provides sufficient financial relief and growth potential after years of weak performance.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]