Investment companies CVC and HPS acquire stakes in ABG in the United States

Global brand development firm Authentic Brands Group (ABG) has announced that funds advised by CVC Capital Partners (CVC) and HPS Investment Partners (HPS) have signed definitive agreements to purchase significant stakes in the company from certain current shareholders. from ABG. The transaction values ​​the company at $12.7 billion in enterprise value.

“We have known CVC and HPS for many years and are delighted to have them join us as important players in ABG,” said Jamie Salter, Founder, Chairman and CEO of ABG. “The entire ABG team – from our leadership to the Director of First Impressions – has done an incredible job of building a sustainable and scalable business with a focus on brand development, digital innovation, commerce electronics, specialty retail, expansion into new verticals, and proven business models.

Since its inception in 2010, ABG has experienced significant growth by implementing a proven playbook that connects strong brands with top licensees and a network of partners to optimize value in the marketplace. ABG’s portfolio has spanned over 30 diverse brands across fashion, luxury, outdoor, home, entertainment, events, media and fine arts.

Global brand development firm Authentic Brands Group (ABG) has announced that funds advised by CVC Capital Partners (CVC) and HPS Investment Partners (HPS) have signed definitive agreements to purchase significant stakes in the company from certain current shareholders. from ABG. The transaction values ​​the company at $12.7 billion in enterprise value.

The acquisition of Reebok, which will close in the first quarter of 2022, will grow ABG’s portfolio to more than $20 billion in annual system-wide retail sales with global distribution in more than 150 countries and highlights demonstrates ABG’s ability to successfully integrate world-class brands into its single platform, the company said in a press release.

“The power of the ABG platform is evident in its growth to date, and we believe the business is only beginning to take full advantage of its scale and diversification,” said Chris Stadler, Managing Partner at CVC.

“We are delighted to partner with Jamie and his exceptional team, whom we have known for almost a decade, to support ABG’s strategy of development and continued growth as it continues to lead the market in the field. brand licensing, supported by a highly differentiated and innovative brand acquisition and management platform,” said Scot French, HPS Managing Partner.

BlackRock Long Term Private Capital will retain its position as the largest shareholder of ABG, which it has held since 2019. Simon, General Atlantic, Leonard Green & Partners, GIC, Brookfield, Lion Capital, Jasper Ridge Partners and Shaquille O’Neal will continue to hold significant stakes in the company.

Upon closing of the transaction, which is expected in December 2021, CVC and HPS will join ABG’s board of directors.

Fibre2Fashion (KD) News Desk