Lands' End, Inc. (NASDAQ: LE) and WHP Global have announced a joint venture (JV) to leverage the value of Lands' End's intellectual property. The agreement will see WHP Global paying Lands' End $300 million in cash for a 50% controlling ownership stake in the JV. This transaction is expected to generate $300 million in gross cash proceeds for Lands' End, enabling the full repayment of its outstanding term loan and significantly strengthening its balance sheet.
The JV will allow Lands' End to retain full operational control of its existing direct-to-consumer and B2B businesses, with WHP Global leading the global licensing strategy and brand expansion. Lands' End intends to use the proceeds from the sale to fully repay its outstanding term loan, which was approximately $234 million as of January 26, 2026, and for general corporate purposes.
Additionally, WHP Global will commence a tender offer for up to $100 million of Lands' End shares at a price per share of $45, subject to proration, potentially resulting in WHP Global owning up to 7% of Lands' End's outstanding shares of common stock.
The JV is expected to close in the first half of 2026, subject to regulatory approvals and other customary closing conditions.
It is anticipated that the licensing platform provided by WHP Global will accelerate Lands' End's category expansion, improve partner selection, and enhance long-term royalty generation for the brand without impacting Lands' End's existing customers, products, channels, or brand presentation.
The press release also indicates that in certain WHP Global monetization events, Lands' End may have the right to exchange its interest in the JV for equity in WHP Global, potentially allowing stockholders to participate directly in WHP Global's future value creation.
For further details, Perella Weinberg Partners is serving as the financial advisor to Lands' End, while Wachtell, Lipton, Rosen & Katz is serving as the legal advisor. In contrast, Morgan Stanley & Co. LLC is acting as the financial advisor to WHP Global, with Kirkland & Ellis LLP serving as the legal advisor.
Lands' End, Inc. is a leading digital retailer of solution-based apparel, while WHP Global is a brand management platform with a portfolio of powerful brands across fashion, sports, and hard goods generating over $7 billion in annual retail sales across 80+ countries.
This joint venture represents a significant opportunity for Lands' End to unlock the value of its intellectual property while strengthening its balance sheet, potentially leading to enhanced growth opportunities and stockholder value. As a result of these announcements, the company's shares have moved -0.63% on the market, and are now trading at a price of $15.78. For more information, read the company's full 8-K submission here.
