SAN FRANCISCO, California: Online fashion giant Shein has agreed to acquire U.S. apparel retailer Everlane, a brand known for its focus on sustainability and supply-chain transparency, in a deal aimed at broadening Shein's image beyond low-cost fast fashion.

Everlane announced the agreement on May 22, saying the company would continue to operate independently after the acquisition.

"Everlane will remain independent," Chief Executive Officer Alfred Chang said in a statement, adding that the company would maintain its sustainability commitments while using the deal to expand its global reach.

Financial details of the transaction were not officially disclosed. However, Puck News reported that the deal values Everlane at about $100 million and that shareholders holding common stock in the company would not receive a payout.

We could not immediately obtain comment from Shein or L Catterton, the private equity firm that is Everlane's majority owner.

A source familiar with the matter said that Shein had long admired Everlane and viewed the acquisition as a way to strengthen its reputation beyond affordable fast fashion.

The source added that multiple bidders had shown interest in Everlane before the agreement was reached.

Shein is expected to use the acquisition to create cross-selling opportunities while also benefiting from Everlane's established reputation for ethical sourcing and transparent manufacturing practices.

The source said Shein plans to invest in Everlane's growth and is expected to keep the retailer's physical stores open, even though brick-and-mortar retail is not central to Shein's business model.

At the same time, Shein's fast production cycles and ability to quickly launch new products could help improve Everlane's operations and efficiency.