May 22 (Reuters) - U.S. apparel brand Everlane said on Friday it had reached an agreement to be acquired by online retailer Shein, giving the fast-fashion company ownership of a brand known for sustainability and supply-chain transparency.
Everlane will remain independent, its CEO Alfred Chang said in a statement, adding that the brand will hold its sustainability commitments while expanding to a global reach through the deal.
Shein has long admired Everlane and plans to use the brand to enhance its
own image of just affordable fast-fashion and drive cross-selling opportunities, a source familiar with the matter told Reuters, adding that there were multiple bidders for Everlane.
Puck News first reported the deal and said it values the brand at about $100 million on Sunday, adding that shareholders with common stock in Everlane would not receive a payout.
L Catterton, the majority owner of Everlane, and Shein have yet to respond to Reuters requests for comment.
Companies such as Shein and Temu have disrupted retail markets through aggressive pricing, heavy marketing and tax loopholes that initially gave them an edge over local players.
Shein plans to invest in growing Everlane and is expected to keep its physical stores open for now, according to the source, even though brick-and-mortar retail is not central to its business model.
At the same time, the company's faster production cycles and ability to quickly bring new products to market could support Everlane's operations.
(Reporting by Abigail Summerville in New York and Neil J Kanatt in Bengaluru; Editing by Pooja Desai)
