L Brands: Selling Rest Of MGF To Sycamore

L Brands, parent to Victoria’s Secret, announced that it “and certain of its affiliates have entered into an agreement to sell all of its remaining interest in MGF Sourcing Holdings to Sycamore Partners for $85 million, subject to customary terms and conditions. The sale is expected to close in the first quarter of 2015. MGF Sourcing Holdings owns and operates the third-party sourcing business in which [L Brands] sold a majority interest in October of 2011.”

When Sycamore purchased 51% of MGF, Leslie Wexner, chairman and CEO of L Brands, noted that the deal “enables our Limited Brands [now L Brands] team to continue our focus on our strategic priorities – growing our intimate apparel, beauty and personal care retail brands.” The sales of its remaining stake in MGF coincides with L Brands’ exit from certain apparel categories at Victoria’s Secret.

Sycamore describes MGF Sourcing as “one of the largest apparel sourcing, manufacturing, and supply chain companies in the world...with more than 40 years of experience and over 700 skilled associates worldwide “

At the time of the 2011 transaction, L Brands noted that it planned to “retain 100 percent ownership of its separate sourcing operation for their intimate apparel and personal care/beauty businesses.”