The Sage Group, LLC just announced the December 2012 closing of the aquisition of Intermix by Gap, Inc. We caught up with The Sage Group’s Paul Altman to find out more about this exciting transaction.
1. Please tell our readers a bit about the sale of Intermix to Gap Inc.
In July 2012, Sage was engaged by Intermix to explore strategic alternatives.
Founded in 1993 by Khajak and Haro Keledjian, Intermix is a leading multi-brand specialty retailer of luxury and contemporary women’s apparel and accessories.
Intermix operates a network of 32 highly-productive small-box format stores in the U.S. and Canada, as well a robust e-commerce destination. The Company is a highly-regarded platform for the stylish consumer and a pioneer in the mixed merchandising of luxury contemporary fashion.
Sage pursued a targeted approach in launching the process, and reached out to a select group of strategic and financial buyers most likely to have interest and with the ability to quickly consummate a transaction.
Sage’s discussions with Gap Inc. advanced very rapidly, and the transaction successfully closed in December 2012, allowing the client to also benefit from favorable tax treatment.
2. What was The Sage Group able to do on behalf of Intermix that made this a successful deal for both sides?
We are fortunate to work with terrific clients, and Intermix was a very attractive asset, which gave us a great starting point.
We bring large firm experience to an entrepreneurial market which usually doesn’t have access to such expertise. We worked hard to understand their business and best position it to the marketplace of buyers and investors. Given the shorter time frame to reach the desired closing, we prepared as much of the diligence as possible before a broader marketing process, so that we’d be ready once we settled on a buyer. Our client had several good choices; we had garnered interest from among the world’s most recognized retailers and private equity firms.
Furthermore, we believe in having an active dialogue with the buyer throughout the process so we can best understand what is important to them; all successful deals require compromise. Our specialty is moving the deal forward while maximizing the value of the transaction for our client.
3. What should a brand look for when seeking representation for a transaction like this one?
Beyond the obvious sector expertise and track record considerations, we always encourage our prospective clients to call our previous ones and hear first-hand how we were able to add value and help get their transaction closed. Clients also need to feel a good rapport with their advisor given how much time they will be spending with them!
