The company is part of the Authentic Brands Group.
The authentic brands group.
Plans to go public and sell equity stakes in deals valued at more than $12 billion have been put aside by the Authentic Brands Group, which is set to acquire Reebok next year.
The company that licenses and develops more than 30 lifestyle and entertainment brands will get a $12.7 enterprise value from the funds advised by CVC Capital Partners and HPS Investment Partners.
The company that generated about $10 billion in annual gross merchandise value worldwide in 2020 would be listed on the stock market under the plans for an initial public offering filed with the Securities and Exchange Commission in July.
Jamie Salter, the CEO of ABG, told WWD that the company will pursue an IPO in the next two decades.
Nick Woodhouse, president of ABG, said that the investments from CVC Capital and HPS Investment Partners were a strong vote of confidence. We are primed to continue furthering our global presence, acquiring new entertainment and lifestyle brands and driving organic growth for our portfolio.
According to The Wall Street Journal, the company will raise $3.5 billion through stake sales, with the largest portion coming from CVC.
ABG took the bankrupt Brooks Brothers out of the picture last year and plans to add Reebook to its stable in 2022. The company was founded in 2010 and has brands like Aeropostale and Lucky Brand in its portfolio.
Long Term Private Capital is ABG's largest shareholder.
Business Insider has an original article.
