David’s Bridal plans to spin off Pearl AI platform via SPAC

David’s Bridal Inc. and K&F Growth Acquisition Corp. II have entered into a nonbinding letter of intent to separate Pearl, an AI-powered wedding planning and digital media platform, into a standalone publicly traded company. The transaction targets a valuation of approximately $350 million and is expected to close in the first half of 2027.

Under the proposed structure, Pearl would own the David’s Bridal brand and intellectual property, licensing it back to the retail operations. The retail division will continue to be owned by Cion Investment Corporation, which has committed $25 million as an anchor investor in the new entity. The separation aims to accelerate growth for both businesses; Pearl is projected to generate an EBITDA margin exceeding 30% this year, with revenues expected to surpass $85 million by 2027.

David’s Bridal CEO Kelly Cook is expected to become the CEO of Pearl, while Elina Vilk is slated to serve as Pearl’s president. A search will be conducted for a new CEO to lead David’s Bridal retail operations. The company stated that retail stores will continue to operate without disruption to products or services during the transition.