Leading global apparel retailer Gap Inc will acquire women’s fashion retailer Intermix Inc. for US$ 130 million as a part of its plan to enter the luxury clothing market, the Wall Street Journal reported.
At present, Intermix owns around 30 outlets in the US and Canada, and after the acquisition, Gap plans to double Intermix’s retail store count and also explore opportunities to expand overseas, Journal quoted Art Peck, president in charge of new brands at Gap, as saying.
The casual wear retailer hopes to benefit from Intermix’s relationship with fashion designers such as Yves Saint Laurent, Rag & Bone and Herve Leger.
Intermix can help Gap in forging collaborations, Khajak Keledjian, founder and CEO of Intermix, told Wall Street Journal.
The acquisition of Intermix by Gap has come at a time when the company is closing about one-fifth of its North American stores.
The Intermix deal would be the first since Gap acquired women’s active wear retailer Athleta for US$ 150 million in 2008.
Gap Inc. owns brands such as Old Navy, Gap and Banana Republic and competes with other global retail brands like H&M and Zara.