Global Brands Group (GBG), a Hong Kong-based company, is implementing strategic measures to reorganize its portfolio and alleviate debt by divesting its Spyder business in South Korea. The sale involves the transfer of GBG’s wholly-owned subsidiary, Global Brands Group Korea Ltd., which is responsible for the design, development, marketing, and sale of apparel, footwear, accessories, and lifestyle products under the Spyder brand in South Korea. Alpha Vista Investment Co., a South Korean private equity investment firm, will acquire the brand’s license through its special purpose company called Snow Vista Co., Ltd.

During the nine-month period ended December 31, 2020, GBG disclosed that its Spyder Korea business contributed approximately $70.5 million to its overall revenue. In comparison to the $472.9 million generated by its other businesses, the sale of this retail-oriented venture will enable GBG to optimize its product and brand portfolio, refocusing on wholesale operations. The proceeds from the transaction will be utilized to partially repay the company’s existing bank debts, contributing to its debt reduction efforts.

Alpha Vista Investment Co. specializes in managing private equity funds and predominantly targets opportunities within the South Korean market. The company is led by Songpil Hur, an experienced professional investor who holds a 50% stake in the firm. The remaining 50% ownership is distributed among three other professional investors, emphasizing the investment expertise and diverse perspectives within the company.

The completion of the transaction is contingent upon approval from GBG’s shareholders at a forthcoming special general meeting. Although the specific date for this meeting has yet to be announced, GBG anticipates finalizing the sale by May 27, 2021. This divestiture is another pivotal step in GBG’s ongoing efforts to restructure its operations and enhance business efficiency.

Useful Links:
1. Global Brands Group Official Website
2. Alpha Vista Investment Co. Official Website