Authentic Brands Group, the parent company of labels such as Forever 21 and Brooks Brothers, is now valued at $12.7 billion, following an investment from CVC Capital Partners and HPS Investment Partners.
Under the terms of the deal, the two private equity firms will gain seats on ABG’s board.
CVC and HPS’ commitment “is a testament to the exceptional work our team has put forth,” and it shows their “confidence in our future growth,” Chairman and Chief Executive Officer Jamie Salter said.
Salter founded the firm in 2010 and has since grown the company’s portfolio to include more than 30 brands from industries such as entertainment, fashion and media. Some of these brands include Barneys New York, Eddie Bauer, Spyder, Nautica, Nine West and Prince. Most recently, the company announced a deal to acquire Reebok by Q1 2022 from Adidas for $2.4 billion, which would raise ABG’s portfolio to more than $20 billion in annual system-wide retail sales across 150 markets, Bloomberg reported.
ABG filed for an initial public offering in July this year with hopes of raising $100 million. The company’s IPO, however, has been delayed to 2023 or 2024.
According to ABG, BlackRock Long-Term Private Capital will continue to remain the company’s largest shareholder. Meanwhile, other investors such as Shaquille O’Neal, Simon, General Atlantic, GIC, Brookfield, Lion Capital, Leonard Green & Partners and Jasper Ridge Partners will maintain significant equity positions.