Spanx founder Sara Blakely will maintain a significant stake in the company and will continue to oversee operations. She will become the company’s executive chairwoman when the deal closes.
The transaction is subject to customary closing conditions, the two companies said.
Shares of the New York private equity investment firm rose 1% to $130 in after hours trading. It closed up 1.5% in the regular session..
“This is a really important moment in time for female entrepreneurs,” Blakely said in a statement. “I started this company with no business experience and very little money, but I cared the most about the customer, and that gave me the courage to launch the company," she said.
Blakely founded Spanx in 2000 with $5,000 in savings after selling fax machines door to door in her hometown of Clearwater, Fla.
"I am as excited today for the future of Spanx as I was when I started it 21 years ago. Now together with Blackstone, we will have even more opportunity to further our mission of making the world a better place… one butt at a time!" Blakely added.
Blackstone will be making its investment in Spanx through its Blackstone Growth unit and Blackstone Tactical Opportunities division, the two companies said.
“Sara is an iconic businesswoman who bootstrapped Spanx into not only a category creator and household name, but also a symbol of authenticity, confidence building and female empowerment," said Global Head of Consumer for Blackstone Growth Ann Chung in a statement.
"We’re honored that Sara and her team have placed their trust in Blackstone as their partner of choice to further accelerate Spanx’s digital transformation and growth, and look forward to what the business will achieve with our full set of resources behind it," Chung added.