Victoria’s Secret has announced that it has completed the acquisition of Adore Me, a digitally-native intimates brand.
According to the retailer, Adore Me will serve as an important long-term growth vehicle for Victoria’s Secret and will generate an estimated $250m (£207.2m) of profitable sales going off its most recently completed fiscal year 2022.
Adore Me will also create “meaningful” sales and profit upside opportunities for Victoria’s Secret, including the improvement of the Victoria’s Secret and PINK customer shopping experience and the modernisation of Victoria’s Secret’s digital platform.
Goldman Sachs acted as financial advisor to Victoria’s Secret, while Kirkland and Ellis provided legal counsel. Credit Suisse acted as financial advisor to Adore Me and WilmerHale provided legal counsel.
Martin Waters, CEO of Victoria’s Secret, 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. I am thrilled with the swift completion of the acquisition and excited to welcome the entire Adore Me team into the Victoria’s Secret family.
“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 modernise the foundation of our company with technology at the forefront of everything we do.”
He added: “From a financial point of view, we firmly believe the standalone Adore Me business can continue their industry-leading sales growth at operating margin rates that are similar or accretive to the Victoria’s Secret operating model. We view this acquisition as a win-win opportunity to drive long-term, sustainable shareholder value.”