Turns out something actually good came out of that nasty lawsuit between Tory and Chris Burch–for Tory anyway.
Thanks to the sale of Chris’ shares in the company, Tory is now a billionaire, Bloomberg is reporting.
As we previously reported, neither parties would disclose how much of Chris’ stake was sold, however two people familiar with the transaction told Bloomberg that Chris parted with about half of his shares, leaving him with a 15 percent stake in the company. BDT Capital Partners and General Atlantic, the new investors, own the remainder, divvying up about 13.3 percent of the company.
So, Chris is indeed still a “significant investor” like he said. Which is exactly what Tory wanted–she feared his business would become too competitive with Tory Burch if they cut ties completely. (Keep your friends close and your ex-business partners and ex-husbands closer?)
Most significantly, however, is that the sale valued Tory‘s company at about $3.3 billion, according to New York-based research firm PrivCo Media LLC. Based on that transaction, Tory’s stake in the company (she owns 28.3 percent) is worth about $935 million. Her net worth gets pushed past the $1 billion mark, after accounting for more than $70 million she received from equity sales and dividends in the past decade. So, yeah, Tory Burch is a billionaire now.
As to why Chris Burch suddenly agreed to Tory’s terms and sold half of his shares, Bloomberg points out that because the deal was completed before the end of 2012, it will save Chris millions of dollars in capital gains taxes, which were raised by Congress to 20 percent from 15 percent on Jan 1.