David’s Bridal Values Pearl at $350M in SPAC Spin-Off

David’s Bridal has signed a nonbinding letter of intent to spin off its AI platform Pearl into a stand-alone, publicly traded company valued at $350 million. The deal values Pearl at $350 million and anticipates $75 million in private investment in public equity (PIPE) funding, including a $25 million anchor investment from CION Investment Corporation, David’s Bridal’s largest shareholder, the company said in a Thursday press release.

How will the separation work?

Pearl will combine with special purpose acquisition company K&F Growth Acquisition Corp II. A SPAC is a shell company that raises capital to merge with a private business and take it public. Pearl, currently a subsidiary of David’s Bridal, will own David’s Bridal’s intellectual property and brand. After Pearl acquires the IP, it will license it back to David’s Bridal, a company spokesperson confirmed.

David’s Bridal will remain a “material ongoing shareholder in Pearl,” according to the company. The two businesses expect long-term agreements that drive growth across both entities. The company said the separation of retail operations from the AI-focused wedding planning and media platform will accelerate both.

Who will run each company?

Current David’s Bridal CEO Kelly Cook is expected to become chief executive of Pearl. Cook will remain on the board of David’s Bridal.

David’s Bridal has engaged an executive consultant who works closely with Cook and her team on daily oversight of the retail business, according to a company spokesperson. The company is searching for a new chief executive of David’s Bridal and expects to have one in place before the split is finalized. The deal is anticipated to close in the first half of next year.

David’s Bridal’s stores will operate as usual with no disruptions.

What did Cook say about the deal?

“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.

She added: “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.”

What does Pearl actually own?

The Pearl ecosystem includes:

• Pearl Planner, a wedding planning platform
• Pearl Connect, an AI vendor platform
• 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. The company expects to be debt free following the deal.

Why does this fit the retailer’s strategy?

The spin-off extends a transformation Cook started when she became CEO in spring 2025. At that time, the company announced the “biggest shift” in its 75-year history. It moved away from traditional bridal retail toward a digital-first strategy.

David’s Bridal described the plan as an evolution into an asset-light company. It named the concept “Aisle to Algorithm.” The approach uses AI to scale its retail media network, planning platform and retail strategy.

This spring, the retailer reshaped its C-suite to scale its technology, AI, operations and revenue initiatives.

The SPAC deal, if completed in the first half of next year, would give the AI unit public-market capital while leaving the 75-year-old retail brand under license, testing whether a media-and-platform model can carry more value than the stores that built the brand.