Feb 26, 2025 activistcompany

ESL Partners supports $300m Lands’ End (LE) IP monetization joint venture

Key Summary: On February 24, 2025, ESL Partners urged the Board to pursue a sale, citing a sharp stock decline despite operational improvements and arguing a strategic buyer could unlock value, while reserving the option to sell its stake independently. On January 26, 2026, the company instead announced a $300 million IP-focused joint venture with WHP Global, including a 50% stake sale, a voting agreement supported by ESL Partners, and a tender offer that could give WHP Global ~7% ownership.

Market Cap: $536 million | Lands' End, Inc. operates as a digital retailer of apparel, swimwear, outerwear, accessories, footwear, home products, and uniform in the United States, Europe, Asia, and internationally.

On February 24, 2025, ESL Partners (55.3%) sent a letter to the Board urging them to consider selling the company to maximize shareholder value. Despite recent operational improvements under Andrew McLean's leadership, the stock price had declined significantly, trading at $11 per share from $20 per share in October 2024. Lampert believed a strategic sale to a well-capitalized buyer could unlock substantial value through synergies and integration. He offered to support the Board in identifying buyers but warned of pursuing an independent sale of his stake if a full-company sale was not pursued.

On January 26, 2026, the company announced a Membership Interest Purchase Agreement with WHP Global to form a joint venture to monetize and expand its intellectual property, with WHP Global acquiring a 50% stake for $300 million while the company retains operational control. ESL Partners support the transaction, have agreed to a related voting agreement, and WHP Global will launch a tender offer for up to 2,222,222 shares at $45 per share, potentially resulting in ~7% ownership. Source

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