Authentic Brands Group, the renowned American company specializing in brand development through marketing and licensing agreements, has experienced a substantial increase in value due to a newly formed partnership with stakeholders. Founded by Jamie Salter in 2010, the company has established itself as a prominent player in the fashion industry, particularly after its recent acquisition of Reebok from Adidas. While an initial public offering (IPO) had been anticipated, Authentic Brands Group ultimately opted for a deal with investment funds.

On November 22, the company revealed that CVC Capital Partners and HPS Investment Partners, alongside existing stakeholders, had obtained significant equity stakes in the organization, resulting in a valuation of $12.7 billion. This valuation exceeds that of Capri, which holds prominent brands Michael Kors and Versace, and currently holds a valuation of $9.7 billion.

Nick Woodhouse, the president and CMO of Authentic Brands Group, expressed confidence in the company’s long-term vision and strategic approach, emphasizing that the investments from CVC Capital and HPS Investment Partners reinforce this belief.

Authentic Brands Group currently manages a portfolio of approximately 30 brands, generating over $20 billion in annual retail sales through partnerships. Its brand portfolio encompasses various fashion labels, including Nautica, Aeropostale, Forever 21, Vince Camuto, and Frye. In addition, the company holds ownership of renowned department store chain Barneys New York and iconic American tailor Brooks Brothers. The company also boasts a selection of celebrity brands such as Shaquille O’Neal, Marilyn Monroe, and Mohamed Ali, along with sports and lifestyle labels including Vision Streetwear, Spyder, Tretorn, and Volcom. Upon the finalization of the Reebok deal in early 2022, Reebok will also become part of Authentic Brands Group’s portfolio.

Authentic Brands Group has recently prioritized expanding its brands within China and the wider Asia-Pacific region. This includes launching a campaign for Brooks Brothers’ Fall/Winter collection by Michael Bastian in China and Japan, a collaboration between Juicy Couture and Chinese brand Staffonly, new store openings for Volcom in Chongqing and Chengdu, and plans for Aeropostale to establish its first store in Pakistan.

Chris Baldwin, a managing partner at CVC, expressed enthusiasm about collaborating with Authentic Brands Group and leveraging its expertise in consumer categories. He underscored the company’s intention for international expansion and emphasized the strategic priorities they plan to pursue in partnership with CVC.

Although the specific breakdown of Authentic Brands Group’s capital has not been disclosed, it is worth noting that BlackRock remains the largest shareholder. Other significant stakeholders include Simon, General Atlantic, Leonard Green & Partners, GIC, Brookfield, Lion Capital, Jasper Ridge Partners, and Shaquille O’Neal.

Useful Links:
1. Reuters: CVC, other investors nab stake in $12.7 bln deal to value Authentic Brands
2. Business of Fashion: Authentic Brands Group Bars IPO, Starts Work on $15 Billion Deal