Shein to buy apparel retailer Everlane

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)

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