American lifestyle and fashion retailer Lands’ End and brand management firm WHP Global have announced an agreement to form a new joint venture “JV” to unlock the value of Lands’ End’s intellectual property while strengthening the company’s balance sheet. The transaction delivers $300 million of gross cash proceeds to Lands’ End, enables full repayment of its term loan and provides continued participation in long-term brand upside.

To create the JV, Lands’ End will contribute all of its intellectual property and related assets associated with the “Lands’ End” brand, including all of the license agreements entered into in connection with Lands’ End’s licensing business, and WHP Global will pay the company $300 million in cash for a 50% controlling ownership stake.

WHP Global will lead the JV’s global licensing strategy and brand expansion, while Lands’ End will retain full operational control of its existing direct to consumer and B2B businesses.

Upon closing, the JV will be owned 50/50 by Lands’ End and WHP Global and will be designed to maximise the value of Lands’ End’s intellectual property, leveraging the brand expertise and global licensee network of WHP Global’s platform. 

WHP Global’s licensing platform is expected to accelerate category expansion, improve partner selection, and enhance long-term royalty generation for the brand. Lands’ End’s existing customers, products, channels and brand presentation will remain unchanged as a result of the transaction.

Additionally, in certain WHP Global monetisation events, such as a qualifying public listing or majority sale, Lands’ End may have the right to exchange its interest in the JV for equity in WHP Global – at the same valuation multiple as the WHP monetisation event – allowing stockholders to participate directly in WHP Global’s future value creation.

For more information, visit whp-global.com.