US specialty clothing retailer Gap Inc has struck a deal to sell Intermix to private equity firm Altamont Capital Partners in another move under its Power Plan 2023, which sees the group focus on its core portfolio.
Gap Inc acquired Intermix in 2012 and today the brand has 31 store locations in the United States and an e-commerce business.
The transaction, the terms of which were not disclosed, is another milestone as Gap Inc continues to execute against its Power Plan 2023, with acute focus on growing its purpose-led, billion-dollar lifestyle brands by leveraging the power of its portfolio and its platform.
The Intermix agreement follows the closing of the sale of its Janie and Jack brand to Go Global Retail last month.
“We are committed to driving long-term, profitable growth for our shareholders and employees, while delivering unique product and experiences for our customers at scale. The sale of Janie and Jack and planned transaction of Intermix demonstrate how we are prioritising our strategic focus and resources behind the growth and potential of Old Navy, Gap, Banana Republic and Athleta,” said Gap Inc head of strategy, Sally Gilligan.
Outlining the plan in October, the retailer said it is turning its focus to growing the Athleta and Old Navy brands to account for 70% of revenue by FY23, from the current level of around 55%. Management also wants to see Old Navy revenues reach US$10bn, and Athleta revenues double to $2bn by 2023 – helped by the annual addition of 30-40 new Old Navy stores and 20-30 new Athleta stores in smaller markets where the population is under 200,000.
Last month, Gap Inc announced plans to launch Athleta in Canada where it eyes US$2bn in sales.
