Qurate Retail Announces Sale of Zulily to Regent
May 24 2023 - 5:00PM
Business Wire
Divestiture Simplifies Qurate Retail’s
Business and Improves Liquidity
Qurate Retail, Inc. (“Qurate Retail”) (Nasdaq: QRTEA, QRTEB,
QRTEP) today announced that Regent (“Regent”), a Los Angeles-based
investment firm with proven expertise in the retail and apparel
sectors, has acquired Zulily, the online retailer delivering a fun
shopping experience helping moms discover exclusive daily deals,
brand names and on-trend styles, and everyday value on clothing,
footwear, homeware essentials and more. Zulily was a wholly owned
subsidiary of Qurate Retail, the largest player in video commerce
through its QVC and HSN businesses and the owner of Cornerstone
Brands. The divestiture aligns with Qurate Retail’s Project Athens
transformation strategy articulated in June 2022 to optimize its
brand portfolio.
“Zulily serves an important role for moms by offering a fun
shopping experience, with brand names and special finds at
incredible prices. We are confident Regent is the right partner for
Zulily to continue serving its customers, while benefiting from
Regent’s depth of operational and strategic expertise in the retail
and apparel sectors,” said David Rawlinson, President & CEO of
Qurate Retail. “We are in the midst of a turnaround at Qurate
Retail. This divestiture will allow our management team to better
focus on our core video commerce assets, QVC and HSN, and the
Cornerstone Brands, while preserving liquidity to further
strengthen our balance sheet. I would like to thank Terry Boyle and
the entire Zulily team for their continued hard work and commitment
amidst a challenging retail environment.”
Regent is a global investment firm that owns and operates
several international consumer brands including Club Monaco, DIM
Paris, La Senza, Escada and DiamondBack. Regent focuses on driving
transformative change by strategically repositioning businesses and
pursuing opportunities that can accelerate growth and innovation.
Regent portfolio companies employ over 20,000 people around the
world. Since its inception, Regent has successfully acquired
businesses from leading Fortune 500 and large-cap companies around
the globe, with 30+ businesses acquired since 2015. Their portfolio
includes companies in retail, media, technology and industrial
sectors.
“We are excited to partner with the Zulily team to help the
company return to its entrepreneurial roots as an independent
business,” said Michael Reinstein, Chairman of Regent. “Zulily has
been a trailblazer in using technology to create a compelling
online customer experience. Their revolutionary logistics and
fulfillment network has also set a new industry standard, and we
are excited to leverage its immense potential to grow the Zulily
business in new markets.”
In connection with the transaction, Zulily will no longer be a
co-borrower in QVC, Inc.’s bank credit facility and Qurate Retail
repaid Zulily’s outstanding borrowing, which was approximately $80
million as of closing. QVC, Inc.’s leverage as defined in its
credit agreement as of March 31, 2023, assuming the Zulily
divestiture had occurred prior to such date, would have been
reduced to 2.3x. Based on the terms of the sale agreement, there is
potential for Qurate Retail to receive an earnout in future
years.
About Qurate Retail, Inc.
Qurate Retail, Inc. is a Fortune 500 company comprised of six
leading retail brands – QVC®, HSN®, Ballard Designs®, Frontgate®,
Garnet Hill® and Grandin Road® (collectively, “Qurate Retail
GroupSM”). Qurate Retail Group is the largest player in video
commerce (“vCommerce”), which includes video-driven shopping across
linear TV, ecommerce sites, digital streaming and social platforms.
The retailer reaches more than 200 million homes worldwide via 14
television channels, which are widely available on cable/satellite
TV, free over-the-air TV, and digital livestreaming TV. The
retailer also reaches millions of customers via its QVC+ and HSN+
streaming experience, websites, mobile apps, social pages, print
catalogs, and in-store destinations. Qurate Retail, Inc. also holds
various minority interests.
About Regent, L.P.
Regent is a global investment firm focused on acquiring
businesses and deploying its strategic and operational expertise to
fuel growth and innovation. Regent’s portfolio includes companies
in the industrial, retail, media and technology sectors across
Europe, Asia and the Americas. Since its inception, Regent has
acquired businesses from leading Fortune 500 and large-cap
companies including Caterpillar, Arcelor Mittal, eBay, Ralph
Lauren, Hanes Brands, Tegna, L Brands and Hain Celestial among
others. More information is available at www.regentlp.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230524005919/en/
Qurate Retail, Inc. Shane Kleinstein, 720-875-5432
Regent, L.P. Marc Menard, press@regentlp.com
Qurate Retail (NASDAQ:QRTEA)
Historical Stock Chart
From Apr 2024 to May 2024
Qurate Retail (NASDAQ:QRTEA)
Historical Stock Chart
From May 2023 to May 2024