Despite having no formal business education, Blakely developed her first product from her apartment
Twenty-one years later, in October 2021, global investment firm Blackstone announced an agreement to acquire a majority stake in the company at a valuation of $1.2 billion. Blakely was also included in TIME magazine’s list of the world’s 100 most influential people and appeared on the cover of Forbes as the youngest self-made female billionaire. On October 20, 2021, Blackstone announced that funds managed by the investment firm had agreed to acquire a majority stake in Spanx. The agreement valued the entire company at $1.2 billion. The transaction was formally completed on November 18, 2021, when Spanx and Blackstone announced the participation of several additional investors.
The company also introduced collections such as Perfect Pants, extending its business into everyday clothing. Blackstone and Spanx announced plans to establish an all-female board of directors.
Blakely would retain a significant ownership stake and continue working with the company’s existing management team, according to Blackstone. “This is a really important moment in time for female entrepreneurs,” she had said. Ann Chung, Global Head of Consumer for Blackstone Growth, said the investment would support product development, international expansion and the company’s digital transformation.
The deal marked a major change for a business that Blakely had built without raising outside investment. She would also become Executive Chairwoman of Spanx. Alongside Blackstone, several prominent women, including Oprah Winfrey, Reese Witherspoon and Whitney Wolfe Herd, joined as investors. Blakely’s journey began while she was still selling fax machines door to door. She wanted to enter the women’s shapewear and undergarment market, an industry that was male-dominated at the time. Despite having no formal business education, she worked on developing her first product from her apartment. She also wrote her own patent application for the undergarment she had invented. The company initially focused on shapewear, a category of clothing designed to provide support and create a smoother appearance under other garments. Over time, it expanded beyond original undergarments into several other clothing categories. Its product range eventually included leggings, denim, trousers, activewear, swimwear and intimate apparel. Blakely welcomed the agreement while reflecting on how the company had started. “I started this company with no business experience and very little money, but I cared the most about the customer, and that gave me the courage to launch the company. Among them were television personality and entrepreneur Oprah Winfrey, actress and Hello Sunshine founder Reese Witherspoon, and Bumble founder Whitney Wolfe Herd. Two female-founded investment firms, G9 Ventures and Able Partners, also participated. The Blackstone investment team responsible for the transaction was also made up entirely of women. The transaction also formed part of Blackstone’s investments in female-founded businesses, which included Bumble, Hello Sunshine and Hotwire Communications.
Their involvement brought together businesswomen who had previously supported the company or established successful companies of their own.
In 2000, Sara Blakely was working as a door-to-door fax machine salesperson when she decided to start her own business with $5,000 from her savings. In 2000, she included the product in her well-known Favorite Thingsselection. Because both had supported the brand for years, blakely also described the participation of Winfrey and Witherspoon as particularly meaningful.
Recalling her first experience with the product, Winfrey said, “When Sara first came on The Oprah Show to tell us about her idea for Spanx, I knew it was brilliant. Her idea was to develop a new type of women’s undergarment that would offer greater comfort and support. However, she had no formal business training, had never attended a business class and had no outside investors. Nonetheless, she went on to establish Spanx, a company that would eventually become a major name in women’s clothing. Winfrey had played a role in bringing the company to public attention during its early years. She added that the company had become a regular part of her wardrobe and expressed support for the company’s continued development. Under the agreement, Blakely retained a significant equity stake in Spanx and became its Executive Chairwoman. The existing senior management team also remained involved in overseeing daily operations.
In 2013, she signed the Giving Pledge, promising to donate half her wealth to charitable causes. Beyond her business career, Blakely had also committed to philanthropy. Through her personal foundation, she had already contributed millions of dollars towards supporting women. You use AI every day. Now get your AI Quotient. Take the AIQ test.