New York’s famed alternative investment company, The Blackstone Group (NYSE: BX), announced today they will be buying a majority stake in women’s wear company Spanx Inc, nudging the company stock to gains of 1.5%. Blackstone has seen some impressive annual gains after some bold moves – including the acquisition of AIG’S Life & Retirement for $2.2 billion earlier this year.
The amount of the transaction puts the total value of Spanx at $1.2 billion. The company was seen as a pivotal game-changer in women’s shapewear – hence attracting investment from Blackstone as a new woman-focused initiative.
Spanx founder Sara Blakely retains her start-up passion for the company and will remain a significant stakeholder as well as embark on a new role of executive chairwoman when the deal is complete.
The viral, immediate success of Spanx is already enough to earn the attention of the big dogs, yet it’s the digital capacity to expand which has attracted Blackstone. Blakely’s company earns two-thirds of its sales through the website, hence why when pumped with Blackstone’s financial backing and marketing resources, the potential for Spanx is seemingly obvious.
Ms. Chung, the overseer of consumer deals for Blackstone’s growth business, pointed out the importance of identity and consumer connection:
“Sara is an iconic founder and has built this brand that we consider to be a household brand…Most women in the U.S. today have some Spanx in their closet.”
Blackstone is diversifying investment again in the latest in a string of women-run businesses. With stock price slowly creeping upwards towards the $130 mark, and with an earnings report expected tomorrow, Blackstone could be one to watch in the coming days.