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Dive Brief: - David’s Bridal has signed a nonbinding letter of intent to separate out its AI platform Pearl into a stand-alone, publicly traded company. Pearl will combine with special purpose acquisition company K&F Growth Acquisition Corp II for the deal. - Pearl, which is a subsidiary of David’s Bridal, will own David’s Bridal’s intellectual property and brand, according to a Thursday press release. After Pearl acquires the IP, it will license it back to David’s Bridal, a company spokesperson confirmed to Retail Dive. - Current David’s Bridal CEO Kelly Cook is expected to become the chief executive of Pearl. The company is engaged in an executive search for the new chief executive of David’s Bridal and expects to have a CEO in place before the proposed split is finalized, according to a company spokesperson. The deal is anticipated to close in the first half of next year. Dive Insight: The separation of the retail operations of David’s Bridal from the AI-focused wedding planning and media platform Pearl will accelerate both entities, according to the company. The deal, which values Pearl at $350 million, anticipates $75 million in private investment in public equity funding, which includes a $25 million anchor investment from CION Investment Corporation, David’s Bridal’s largest shareholder. David’s Bridal will be a “material ongoing shareholder in Pearl,” according to the company. Pearl and David’s Bridal expect to have long-term agreements that drive growth across both businesses. “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,” Cook said in a statement. “With Pearl’s agentic technology and proven business model, combined with David’s Bridal’s strong brand and retail presence, we see tremendous opportunities to help more couples plan their weddings and connect with vendors who can bring their visions to life.” While Cook is intended to be the CEO of Pearl, David’s Bridal has engaged with an executive consultant who has been working closely with her and her team on the daily oversight of David’s retail business, according to a company spokesperson. Cook will remain on the board of David’s Bridal. David’s Bridal’s stores will operate as usual with no disruptions. The Pearl ecosystem includes the wedding planning platform Pearl Planner, the AI vendor platform Pearl Connect and the Pearl Digital Content Network, which includes original programming, YouTube channels, blogs and social media profiles. Pearl projects revenue growth of over $85 million in 2027 and is expected to be debt free following the deal. Cook was named CEO of David’s Bridal in the spring of 2025. At that time, the company announced the “biggest shift” in its 75-year history as it moved away from being a traditional bridal retailer to focus on a digital-first strategy. The wedding retailer said it was evolving into an asset-light company with a focus on using AI to scale its retail media network, planning platform and retail strategy in a concept it named the Aisle to Algorithm plan. This spring the company reshaped its C-suite as part of its efforts to scale its tech, AI, operations and revenue initiatives.
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