WHP Global has announced a plan to purchase a controlling 70% interest in fashion brand Isaac Mizrahi from Xcel Brands Inc.
Under the deal, which is valued at $68 million, Xcel will retain a 30% minority interest in Isaac Mizrahi and receive $46.2 million in cash proceeds. Xcel will also continue to manage Isaac Mizrahi’s thriving business on QVC with WHP Global and enter a new license agreement to design and distribute the brand’s apparel in the US and Canada.
Mizrahi will continue to serve at the company’s chief design officer and said in a statement that he is “very excited to harness the power of my brand. I couldn’t ask for better partners.”
Isaac Mizrahi has generated over $1 billion in retail sales since it was founded in 1987. Today, the brand is one of the top fashion brands on QVC, a U.S. television network and shopping channel owned by Qurate Retail Group.
“The Isaac Mizrahi business has grown for 12 years straight under Xcel’s stewardship and we’re pleased to now partner with WHP to continue the brand’s global momentum,” said Xcel Brands chairman and CEO Robert D’Loren. “Selling a majority interest in the Isaac Mizrahi brand is a transformative moment in Xcel’s history and represents the first time we have monetized one of our brands since Xcel was founded in 2011.”
D’Loren added that the new deal will help “fuel a number of our upcoming strategic initiatives” related to growing new brands and the company’s live-streaming technology capabilities.
WHP Global, a leading New York-based firm known for acquiring consumer brands, also owns Anne Klein, Joe’s Jeans, Toys ‘R’ Us and more brands. Accounting for Isaac Mizrahi, the company’s brands now generate more than $4.2 billion in global retail sales.
“We are excited to partner with Isaac and Xcel as we work together to architect and orchestrate the next phase of growth for the Isaac Mizrahi fashion house,” said WHP Global chairman and CEO Yehuda Shmidman. “We see meaningful opportunities to expand the brand by leveraging WHP Global’s platform and the reach of our fashion vertical.”