Gap sells luxury fashion business Intermix to Altamont Capital Partners

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Altamont Capital Partners has agreed to carve out Gap’s luxury fashion boutique business Intermix as it eyes a resurgence in social events as Covid-19 eases.

Intermix opened its first boutique on New York’s lower Fifth Avenue in 1993, and was bought by retail clothing giant Gap in 2012. It currently has 31 boutiques and an online store.

Altamont described Intermix as an enviable platform with strong brand identity, an innovative business model, and highly attractive customer base. The brand includes offerings from designers including Isabel Marant, Ulla Johnson, Christopher Esber and Alanuii.

Altamont is optimistic that the retail market will pick up after the pandemic for Intermix to attain a long-term growth. The US consumer confidence index climbed to 121.7 in April, the highest level since February 2020.

Keoni Schwartz, managing director at Altamont Capital Partners, said, “As events and social gatherings become more frequent, Intermix is well-positioned to re-emerge as a leading omni-channel fashion retailer and continue to improve its offering and service for its exceptional customer base.

“We look forward to applying our considerable experience with other carve-outs to support the management team and are excited to be investing in Intermix as they continue to build a compelling, independent omnichannel retailer delivering a best-in-class customer experience.”

Dealmaking in the retail sector has seen a strong trend in recent months. KKR sealed a $5.75bn sale of vitamins and nutritional supplement maker The Bountiful Co to Nestlé last month, at almost double the valuation when the private equity giant bought into the business four years ago.

Consumer-focused private equity house L Catterton has bought a controlling interest in French casual clothing brand Just Over The Top in January.

It also emerged last month that the owners of lingerie retailer Victoria’s Secret were reportedly back in talks with potential buyers at more than double the valuation of last year’s scrapped investment by private equity house Sycamore Partners.

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