We are advising L Brands on the separation of Victoria’s Secret

Davis Polk is advising L Brands, Inc. on the separation of Victoria’s Secret into a privately held company majority-owned by Sycamore Partners. Sycamore will purchase a 55% interest in Victoria’s Secret for approximately $525 million, and L Brands will retain a 45% stake, at a total enterprise value of $1.1 billion.

L Brands, through Victoria’s Secret, PINK and Bath & Body Works, operates 2,920 company-owned specialty stores in the United States, Canada, the United Kingdom and Greater China, and its brands are sold in more than 700 franchised locations worldwide. Sycamore Partners is a private equity firm based in New York that specializes in consumer, distribution and retail-related investments and partners with management teams to improve the operating profitability and strategic value of their business.

The Davis Polk corporate team includes partner William H. Aaronson and associates Cheryl Chan and Elizabeth R. Diggs. Partner Pritesh P. Shah and counsel Bonnie Chen are providing intellectual property advice. Managing Partner Neil Barr and partner Patrick E. Sigmon are providing tax advice. Partner Edmond T. FitzGerald is providing executive compensation advice. Partner Brian D. Hirsch is providing real estate advice. Partner John B. Meade is providing capital markets advice. All members of the Davis Polk team are based in the New York office.