Lands’ End Inc (NASDAQ:LE) shares rallied 28% on Monday after the apparel group unveiled a strategic joint venture with brand management company WHP Global that will deliver $300 million in gross proceeds.
Under the transaction, Lands’ End will contribute its intellectual property and related brand assets into a newly formed 50/50 joint venture. WHP Global will invest $300 million to secure its stake, while Lands’ End intends to use the cash to fully repay its roughly $234 million term loan and fund general corporate needs.
As part of the arrangement, WHP Global will take responsibility for global brand development and licensing initiatives, while Lands’ End will continue to run its core direct-to-consumer and business-to-business operations. Lands’ End will license the brand from the joint venture, paying royalties that start at $50 million in the first year.
In a parallel move, WHP Global plans to launch a tender offer for up to $100 million of Lands’ End shares at $45 per share, which could result in WHP Global owning as much as 7% of the retailer’s outstanding equity.
The agreement also provides Lands’ End with potential upside optionality, as the company may be able to exchange its joint venture interest for WHP Global equity during certain future monetization events, allowing shareholders to benefit from WHP Global’s longer-term growth.
“This joint venture represents a fantastic opportunity for Lands’ End and will enable an even brighter future for the Company and brand,” said Josephine Linden, Chair of the Lands’ End Board of Directors.
The transactions are expected to close in the first half of 2026, subject to regulatory clearances and customary closing conditions.