Sycamore Partners’ $525 Million Acquisition of Victoria’s Secret

Sycamore Partners' $525 Million Acquisition of Victoria’s Secret

Davis Polk advised L Brands, Inc. on the separation of Victoria’s Secret into a privately held company majority-owned by Sycamore Partners. Shearman & Sterling represented BridgeParkAdvisors, a financial advisor to L Brands.

Sycamore will purchase a 55% interest in Victoria’s Secret for approximately $525 million, and L Brands will retain a 45% stake, at a total enterprise value of $1.1 billion.

L Brands, through Victoria’s Secret, PINK and Bath & Body Works, operates 2,920 company-owned specialty stores in the United States, Canada, the United Kingdom and Greater China, and its brands are sold in more than 700 franchised locations worldwide.

Sycamore Partners is a private equity firm based in New York that specializes in consumer, distribution and retail-related investments and partners with management teams to improve the operating profitability and strategic value of their business.

The Davis Polk corporate team included partner William H. Aaronson (Picture) and associates Cheryl Chan and Elizabeth R. Diggs. Partner Pritesh P. Shah and counsel Bonnie Chen provided intellectual property advice. Managing Partner Neil Barr and partner Patrick E. Sigmon provided tax advice. Partner Edmond T. FitzGerald provided executive compensation advice. Partner Brian D. Hirsch provided real estate advice. Partner John B. Meade provided capital markets advice.

Shearman & Sterling team included Robert Masella, Alan S. Goudiss, Russell Sacks, and Olivier Souleres.

Involved fees earner: William H. Aaronson – Davis Polk & Wardwell; Neil Barr – Davis Polk & Wardwell; Cheryl Chan – Davis Polk & Wardwell; Bonnie Chen – Davis Polk & Wardwell; Elizabeth Diggs – Davis Polk & Wardwell; Edmond FitzGerald – Davis Polk & Wardwell; Brian Hirsch – Davis Polk & Wardwell; John Meade – Davis Polk & Wardwell; Pritesh P. Shah – Davis Polk & Wardwell; Patrick Sigmon – Davis Polk & Wardwell; Alan Goudiss – Shearman & Sterling; Robert Masella – Shearman & Sterling; Russell Sacks – Shearman & Sterling; Olivier Souleres – Shearman & Sterling;

Law Firms: Davis Polk & Wardwell; Shearman & Sterling;

Clients: BridgePark Advisors; L Brands, Inc.;

Author: Ambrogio Visconti