Authentic Brands Group (ABG), a prominent player in the fashion industry known for its brand development through marketing and licensing agreements, has recently been valued at $12.7 billion. This valuation comes as a result of a new deal with investment funds. Founded by Jamie Salter in 2010, ABG has gained significant visibility in recent years, especially after its announcement of acquiring Reebok from Adidas. While there were speculations about a potential initial public offering (IPO) in New York, ABG has decided to partner with CVC Capital Partners and HPS Investment Partners, along with existing stakeholders, to further expand its global presence.
With a portfolio of approximately 30 brands, ABG generates over $20 billion in annual retail sales through its partnerships. The brand portfolio spans across various sectors, including well-known fashion brands such as Nautica, Aeropostale, Forever 21, Vince Camuto, and Frye. In addition, ABG owns other notable brands like Barneys New York and Brooks Brothers. The company also possesses celebrity brands such as Shaquille O’Neal, Marilyn Monroe, and Mohamed Ali, as well as sports and lifestyle labels like Vision Streetwear, Spyder, Tretorn, Volcom, and soon, Reebok.
ABG has been actively expanding its presence in China and the wider Asia-Pacific region. For example, Brooks Brothers recently launched a campaign in China and Japan showcasing the Fall/Winter collection designed by Michael Bastian. Juicy Couture has collaborated with Chinese brand Staffonly, and Volcom has opened stores in Chongqing and Chengdu. Furthermore, ABG is planning to open the first Aeropostale store in Pakistan, demonstrating its commitment to international expansion.
The strategic partnership with CVC and HPS confirms the confidence in ABG’s long-term vision and approach. The company aims to continue acquiring new entertainment and lifestyle brands, driving organic growth, and expanding globally. Chris Baldwin, a managing partner at CVC, highlights their belief in ABG’s unique business model and its ability to innovate and grow brands across various consumer categories. CVC plans to support ABG’s growth ambitions, particularly in international markets, leveraging its experience in the consumer, retail, and entertainment sectors.
While the exact breakdown of ABG’s capital has not been disclosed, it is known that BlackRock remains the company’s largest shareholder. Other significant equity positions are held by stakeholders such as Simon, General Atlantic, Leonard Green & Partners, GIC, Brookfield, Lion Capital, Jasper Ridge Partners, and Shaquille O’Neal.
With a valuation of $12.7 billion, ABG solidifies its position as a major player in the fashion industry. Its diverse portfolio of brands and strategic partnerships position the company well for global expansion and continued success in the market.
For more information on ABG and its brands, please visit their official website. You can also stay updated on the latest news and developments in the fashion industry by visiting a reputable fashion news website, such as FashionUnited.
