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SearchDavid's Bridal and K&F Growth Acquisition Corp. II signed a non-binding letter of intent to convert Pearl, its AI-powered wedding planning platform, into an independent public company. The transaction, which values Pearl at $350 million, aims to accelerate digital growth while the physical chain retains the brand through a licensing agreement.
David's Bridal Inc. has announced its intention to separate its Pearl division, a digital wedding planning platform powered by artificial intelligence, to convert it into an independent public company. The move is structured through a non-binding letter of intent signed with K&F Growth Acquisition Corp. II, a Special Purpose Acquisition Company (SPAC), with the goal of unlocking new growth opportunities for both entities.
The proposed agreement values Pearl at a pro forma enterprise value of approximately $350 million, which equates to roughly 9.3x projected 2027 EBITDA, assuming no redemptions by K&F shareholders. The transaction contemplates a private financing (PIPE) of up to $75 million, subject to potential increases. Cion Investment Corporation, the largest shareholder of David's Bridal, has proposed an anchor investment of $25 million in Pearl, pending final documentation.
The transaction is expected to close in the first half of 2027, although the companies warn that closing is subject to the completion of due diligence, the negotiation of a definitive agreement, approvals from the boards of directors and shareholders of both companies, as well as relevant regulatory approvals. There is no guarantee that the transaction will be completed on the terms or timelines outlined.
A key aspect of the plan is the transfer of intellectual property. Pearl will retain the David's Bridal brand and intellectual property rights. The physical store chain will continue to operate under a licensing structure, where Pearl will grant it the use of the brand. David's Bridal will remain a significant shareholder in the new public company.
The company assures that physical stores will "operate as usual, with no interruption in daily operations, appointments, products, services, or the customer experience." This separation seeks to allow the retail business to focus on its physical operations while Pearl scales its digital model.
Kelly Cook, current CEO of David's Bridal, is expected to become the CEO of Pearl if the transaction is completed. Cook has been with the company since 2019 and has led significant transformations at other companies such as Continental Airlines and DSW. A search will be conducted to appoint a new CEO for David's Bridal.
Elina Vilk, current president and chief business officer of David's Bridal, will assume the role of president of Pearl. Vilk has previous experience at Meta, PayPal, Hootsuite, WooCommerce, and Visa, which reinforces the technological focus of the new entity.
"Pearl is shaping the next generation of wedding planning, and this next step will give both businesses room to grow independently while continuing to strengthen each other," Kelly Cook stated in a release.
Pearl operates a digital ecosystem that includes Pearl Planner (consumer planning), Pearl Connect (vendor software), and LoveStories TV (digital content and media). The platform generates revenue through advertising, vendor subscriptions, e-commerce, licensing, and brand partnerships.
According to unaudited projections presented by the company:
The company estimates that 90% of U.S. brides interact with its ecosystem, with approximately 13 billion annual brand impressions and interactions. Its digital content network has 30 million monthly viewers and 8 million social media followers, while its e-commerce site attracts 60 million visitors per year.
David's Bridal cited data from Grand View Research to estimate that the U.S. wedding industry is valued at nearly $100 billion this year, with 2.1 million couples married in 2024 according to government figures.
Dan Fetters, co-CEO of K&F, highlighted the investment appeal: "We were attracted to Pearl's compelling triad: established profitability, very attractive growth potential, and an unlevered and pristine balance sheet, which in combination we believe will create substantial value for public shareholders."
Edward King, also co-CEO of K&F, added: "Pearl combines long-standing relationships in the wedding industry with an asset-light software and media monetization model. We look forward to partnering with Kelly, Elina, and the Pearl team."
K&F Growth Acquisition Corp. II completed its initial public offering in February 2025, raising $287.5 million in gross proceeds. The SPAC will hold a special general meeting on November 3 to vote on extending its deadline to complete an initial business combination, which would move from November 6, 2026, to February 7, 2028. The company warns that it cannot guarantee that shareholders will approve the extension or that there will be no share redemptions.
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