Victoria’s Secret completes Adore Me acquisition
Victoria’s Secret & Co. is bullish on its latest acquisition.
The intimate apparel retailer said it has completed the acquisition of Adore Me, a digitally native intimates brand known for its inclusive sizing and body positivity. Founded in 2011, Adore Me counts more than 1.2 million active customers and is powered by a proprietary tech platform. The brand offers monthly subscription and home try-on options, and also has six physical stores.
Victoria's Secret announced the deal in the fall, saying it would pay $400 million in an upfront cash payment and make further payments on reaching certain goals over a two-year period.
Victoria’s Secret & Co. said it will leverage Adore Me’s expertise and technology to continue to improve the Victoria’s Secret and Pink customer shopping experience and accelerate the modernization of its digital platform. Adore Me will serve as an important long-term growth vehicle for VS&Co, generating an estimated $250 million of profitable sales in their most recently completed fiscal year 2022, the company said.
“From the beginning, we evaluated Adore Me as a two-for-one opportunity – a technology-led, digital-first innovator in the intimates category and a highly efficient, growing and profitable standalone business model,” said Martin Waters, CEO, Victoria’s Secret & Co. “In Adore Me, we have acquired a business and a team that will help us deliver improved, elevated and differentiated experiences for Victoria’s Secret and PINK customers. This acquisition will be a significant accelerant as we pivot toward growth and modernize the foundation of our company with technology at the forefront of everything we do.”
From a financial point of view, Waters added, the company believes that the standalone Adore Me business can continue its sales growth at operating margin rates that are similar or accretive to the Victoria’s Secret & Co. operating model.
“We view this acquisition as a win-win opportunity to drive long-term, sustainable shareholder value,” he said.
Goldman Sachs acted as financial advisor to VS&Co and Kirkland & Ellis provided legal counsel. Credit Suisse acted as financial advisor to Adore Me and WilmerHale provided legal counsel.