Japanese womenswear maker Wacoal Holdings Corp. agreed to acquire all shares of U.S.-based Intimates Online Inc. for US$85 million in cash.
Intimates Online operates brick-and-mortar stores in New York and Chicago but also runs an e-commerce website for its Lively brand. In 2018, Intimates Online booked a net loss of US$3.7 million.
The Japanese lingerie company said the acquisition is part of its plans to expand its overseas and online presence.
Wacoal hopes the deal will help the company gain millennial customers in the U.S. It said the acquisition will provide Intimates Online its manufacturing infrastructure and a potential opportunity to expand its business outside the U.S.
Wacoal plans to acquire the intimate apparel retailer through subsidiary Wacoal International Corp. in a deal expected to complete Aug. 2.
Wacoal also plans to pay shareholders between US$20 million and US$55 million in "earnout consideration" over four years, depending on Intimates Online's sales performance.