Victoria’s Secret acquires Adore Me in a US$400m deal

Fortune 500 listed retailer Victoria's Secret said this strategic acquisition reflects Adore Me’s growth potential and combined company synergies.

Victoria’s Secret & Co (VS&Co) has acquired the online intimates start-up Adore Me in a strategic move it says will position the brand for growth. It plans to finance the transaction at closing with cash on hand.

The structured transaction includes an initial upfront US$400m cash payment and further cash consideration, a portion of which is fixed and a portion of which is based on the performance of Adore Me and achievement of specified growth and synergy targets over a two-year period.

The transaction is expected to close by the end of January 2023.

VS&Co states this as an opportunity to leverage Adore Me’s expertise and technology to continue to improve its brand and Pink customer shopping experience, including accelerating the modernisation of its digital platform. Both the brands will continue pushing the intimates category forward in a “more inclusive, tech-forward, and sustainable way”.

Martin Waters, Victoria’s Secret & Co CEO, said: “Adore Me is a technology-led, digital-first innovator in the intimates category that will help us bring differentiated experiences to Victoria’s Secret and Pink customers. This acquisition will be a significant accelerant as we pivot toward growth and modernise the foundation of our company with an entrepreneurial mindset that puts technology at the forefront of everything we do. In partnering with the incredible team at Adore Me, we will move to the future much faster.”

Adore Me’s ‘Home Try-On’ offering generates strong retention among its customers with a personalised product experience and has achieved scale by leveraging a complex combination of proprietary logistics, algorithms, and operational assets.

This shopping experience, Adore Me adds, presents an attractive new option for the Victoria’s Secret customer base and exemplifies the next generation of retail innovation to complement Victoria’s Secret’s best-in-class physical store offering.

Morgan Hermand, Adore Me’s founder and CEO, added: “We have significantly grown our business over the past decade, and are excited to bring our technology, purchase experiences, inclusive assortment, brand and team to join the next phase of Victoria’s Secret’s growth and customer journey transformation.”