Reversing course, Authentic Brands Group, owner of over 30 retail properties including Aeropostale, Forever 21, Brooks Brothers and Barneys New York, is selling significant equity stakes to CVC Capital Partners and HPS Investment Partners instead of pursuing an IPO.
The company said the investments give it an enterprise value of $12.7 billion, compared to an estimated post-IPO valuation of $10 billion, according to an S1 prospectus filed with the Securities and Exchange Commission in July.
“We have known CVC and HPS for many years and are thrilled that they are coming on board as significant stakeholders in ABG,” said Jamie Salter, Founder, Chairman and CEO of ABG in a release. “Their commitment is a testament to the exceptional work our team has put forth as well as CVC and HPS’s confidence in our future growth.”
Founded in 2010, Authentic Brands Group owns brands across the fashion, luxury, outdoor, home, entertainment, events, media and fine arts sectors. With the pending acquisition of Reebok, expected to close in Q1 of 2022, ABG will total over $20 billion in annual revenue, with global distribution in more than 150 countries.
SPARC Group, a partnership between Authentic Brands Group and Simon Property Group, acquired Brooks Brothers out of bankruptcy in 2020 for $325 million, after increasing its original bid of $305 million.
Post transaction, BlackRock Long Term Private Capital will remain Authentic Brands Groups’s largest shareholder. Other major investors include Simon, General Atlantic, Leonard Green & Partners, GIC, Brookfield, Lion Capital, Jasper Ridge Partners and Shaquille O’Neal.
The post Authentic Brands Group Foregoes IPO, Sells Stakes appeared first on Multichannel Merchant.
0 Commentaires