David's Bridal plans to spin off Pearl, its AI wedding-planning platform, into a standalone public company valued at ~$350M. The two sides signed a non-binding letter of intent on Oct. 22.
Pearl would go public by merging with K&F Growth Acquisition Corp. II, a special purpose acquisition company listed on the Nasdaq. The deal is expected to close in the first half of 2027.
The $350M figure works out to about 9.3x Pearl's projected 2027 EBITDA, assuming no K&F shareholder redemptions.
Pearl takes the brand, David's keeps the stores
The deal moves the David's Bridal brand and its intellectual property into Pearl, which would then license them back to the stores.
Stores keep operating as usual, and David's Bridal expects to remain a material shareholder in Pearl.
Pearl's management forecasts EBITDA margins above 30% in 2026 and revenue growth topping 100% in 2027, to more than $85M. The projections are unaudited.
Pearl's Spinoff Terms and Targets
Deal terms and company projections for the planned separation, as of Oct. 22, 2026.
| Term | Value |
|---|---|
| Pro forma enterprise value | $350M |
| Expected close | 1H 2027 |
| PIPE financing | $75M |
| CION anchor investment | $25M |
| 2026 EBITDA margin target | >30% |
| 2027 revenue target | >$85M |
| 2027 revenue growth target | >100% |
The platform bundles an AI wedding planner, vendor software for leads and appointments, and a content network reaching 8M followers and 30M monthly viewers.
Pearl estimates ~90% of US brides touch its ecosystem, and Grand View Research pegs the US wedding services market at close to $100B in 2026.
A company with two bankruptcies behind it
David's Bridal filed for bankruptcy protection in 2018, then again in 2023, before selling itself to CION Investment Corporation to avoid shutting down.
CION, now the chain's largest shareholder, has proposed a $25M anchor investment inside a contemplated $75M private placement.
CEO Kelly Cook, who would run Pearl after closing, argues the business already has the customer most AI startups are still hunting for.
"Pearl has earned the right to stand on its own because it's created more value than we've expected."
Kelly Cook, David's Bridal
The timing is awkward. Consumer IPOs have been sluggish, listings are getting postponed, and investor patience with AI branding has thinned.
K&F faces its own clock. Shareholders vote Nov. 3 on extending its deadline to complete a deal from Nov. 6, 2026, to Feb. 7, 2028.
Meanwhile, the retail side keeps leaning on the brand, recently launching a Puppy Love Collection of dog wedding gowns and tuxedos starting just under $50.
Nothing is locked in. The companies still need a definitive agreement, due diligence, board and shareholder approvals, and regulatory sign-off before any of these numbers get tested in public markets.
