(Reuters) - Vineyard Vines, a U.S preppy clothing and accessory retailer, is working with investment bank Goldman Sachs Group Inc (GS.N) to sell a minority stake that could value the company at as much as $1 billion, people familiar with the matter said on Monday.
Selling a stake to investors would mark a new chapter for the nearly 20-year-old company, which is closely owned by its sibling founders, Shep and Ian Murray.
The Murray brothers quit their Manhattan desk jobs to sell clothing that was inspired by their Martha’s Vineyard summers, delivering their first 800 ties in 1998.
The Stamford, Connecticut-based company has about $80 million in 12-month earnings before interest, tax, depreciation and amortization (EBITDA), the sources said, asking not to be named because the matter is confidential.
Goldman Sachs and Vineyard Vines declined to comment.
Vineyard Vines, which touts a signature pink whale logo, sells clothing and accessories for men, women and children. Its slogan is “every day should feel this good.”
Earlier this year, preppy outfitter Southern Tide was acquired by apparel company Oxford Industries Inc (OXM.N) for $85 million. Oxford also owns other preppy apparel mainstays, including resort wear brand Lilly Pulitzer.
Reporting by Lauren Hirsch in New York; Editing by Richard Chang