Gap (NYSE:GPS) will move into the luxury apparel market with the acquisition of Intermix, an upscale women’s boutique.
The $130 million deal, which includes 30 Intermix stores in Canada and the U.S., marks the first purchase by Gap since 2008, the Wall Street Journal noted.
Gap will seek to build the Intermix brand outside North America, but will also double its number of locations in the U.S. Intermix, which generates annual sales of about $130 million, retails apparel from leading designers, including Yves Saint Laurent and Herve Leger. Gap will try to leverage those relationships to enhance the fashion standing of its own brands.
The acquisition comes as Gap moves to close 20% of its eponymous stores in the U.S. and Canada and its looking to build its presence in overseas markets. The company saw its shares rise strongly last year as quarterly profits grew and it raised it earnings forecast for the full year.
Shares of Gap were flat in Thursday morning trading.