Bebe acquires Brookstone in partnership with Bluestar Alliance
Bebe Stores, Inc. has announced its partnership with brand management company Bluestar Alliance to acquire Brookstone and its related assets. The acquisition closed on October 19, after the lifestyle gift and gadget retailer spent months tied up in a bidding war.
The companies plan to expand Brookstone's wholesale distribution to retailers across America and internationally, in addition to maintaining the brand's 30 airport stores with fellow Brookstone asset owner Apex Digital.
Despite appearing to be a somewhat unusual pairing, this new partnership and acquisition marks a unique opportunity for Bebe, typically known for its women's apparel, to expand into the lifestyle category.
“This investment represents our combined efforts to create value for Bebe stores by expanding the scope of our operations, said Nick Capuano, chairman of Bebe stores, in a release. "We will continue to look for opportunities that leverage our tax assets and create value for our shareholders.”
“We are pleased to expand our already-successful relationship with Bluestar and can see the potential synergies with other brands in their portfolio," said Manny Mashouf, CEO of Bebe stores."This investment, a direct result of our partnership with B. Riley Financial, which sourced the deal, will create a strong platform for future growth and enhance our ability to generate free cash flow to maximize our dividends to shareholders."
Bebe and Bluestar have been business partners since 2016 when Bluestar acquired an interest in the brand.
Part of a flow of new licensee interest coming to Brookstone in the midst of its acquisition, bed and bath supply company London Luxury has become the lifestyle product retailer's newest licensee.
Brookstone is known for offering an array of entertainment, wellness, home, and travel brands. The retailer currently operates 150 stores throughout the U.S. and China.
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