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L Brands To Spin-Off Flagship Brands Victoria’s Secret And Bath & Body Works

On Tuesday, the American fashion retailer L Brands (NYSE: LB) announced the intention to spin-off its flagship brands Victoria’s Secret and Bath & Body Works. Despite having been in talks with multiple buyers, the board believes a spin-off would unlock more shareholder value.

Both Victoria’s Secret and Bath & Body Works are expected to become separate publicly traded companies in August. Victoria’s Secret CEO Martin Waters will remain top executive at the company, while L Brands CEO Andrew Meslow will add the Bath & Body Works leadership role to his current obligations.

L Brands has disclosed that the move will enable both brands to focus on distinctive growth strategies in a quickly changing retail landscape. Moreover the choice of a spin-off draws on the newly found turnaround momentum the brands have experienced.

After a canceled deal with PE firm Sycamore Partners last year would have valued Victoria’s Secret at $1.1 billion, analysts at JPMorgan and Citi had recently valued the lingerie label at $5 billion.


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