From $5,000 to $1.2 billion: Spanx lands investment deal with Blackstone

By Ilya Banares | Bloomberg

Sara Blakely founded Spanx Inc. successful 2000 with $5,000 of her idiosyncratic savings earned from selling fax machines door-to-door. She conscionable struck a woody with Blackstone Inc. that values the institution astatine $1.2 billion.

Blakely, 50, volition clasp a important involvement successful the Atlanta-based shaper of shapewear and pantyhose, according to a connection from the 2 firms connected Wednesday. She volition proceed to oversee regular operations alongside Spanx’s existing elder absorption squad and volition go enforcement chairwoman erstwhile the woody closes.

“This is simply a truly important infinitesimal successful clip for pistillate entrepreneurs,” Blakely said successful the statement. “I started this institution with nary concern acquisition and precise small money, but I cared the astir astir the customer, and that gave maine the courageousness to motorboat the company.”

Blakely often recounts her bold selling tactics during the company’s aboriginal days, including modeling her ain undergarments successful transportation meetings to person retailers to transportation the products. Spanx was an aboriginal pioneer of shapewear, a class that’s go progressively competitory with makers including HoneyLove Inc. and Kim Kardashian West’s Skims.

Blackstone’s concern follows different acquisitions successful companies founded by women, including Whitney Wolfe Herd’s Bumble Inc. and Reese Witherspoon’s Hello Sunshine media.

Blackstone made the concern done its Blackstone Growth and Blackstone Tactical Opportunities businesses.