• Home
  • Breaking News
  • Privacy Policy
  • Email Whitelisting
No Result
View All Result
Top Trading Strategy
No Result
View All Result
Home Breaking News

Authentic Brands Group shelves IPO, to sell stake in deal that values company at $12.7 billion

by
November 22, 2021
in Breaking News
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

Related Posts

Malaysia’s fourth quarter will be ‘the challenge’ for its economy, says finance minister

Don’t Give Up on the Chip Makers. These 9 Stocks Look Like Bargains.

China Shocks With Rate Cut as Data Show ‘Alarming’ Slowdown

Personalized coffees and prestige skincare: Consumers snap up premium items despite inflation crisis

Authentic Brands Group Chief Executive Jamie Salter.

Source: Authentic Brands Group

Retail conglomerate Authentic Brands Group will shelve a planned initial public offering and instead sell significant equity stakes in its business to private equity firm CVC Capital, hedge fund HPS Investment Partners and a pool of existing stakeholders.

The deal, which was announced Monday, gives the company a $12.7 billion enterprise value.

Authentic Brands’ portfolio companies include apparel retailers Forever 21 and Aeropostale, department store chain Barneys New York, men’s suit maker Brooks Brothers and Sports Illustrated magazine. Early next year, its deal to buy sneaker maker Reebok is expected to close, adding another brand to its holdings.

The company had filed for an IPO in early July. But Authentic Brands Chief Executive Jamie Salter said it will now target an IPO date in 2023 or 2024. He said he has signed on to be CEO for five more years.

“The IPO climate is ridiculous,” Salter said in a phone interview. “I think we would have gotten a massive valuation … maybe even more than what we sold the business for. But guess what? I’d rather be private.”

A wave of retail companies entered the public market in recent months, from eyeglasses maker Warby Parker and fashion rental platform Rent the Runway to eco-friendly shoe brand Allbirds and e-commerce fashion site Lulu’s. Investors have favored names that have a strong footing on the internet, allowing some to fetch valuations as if they were high-growth tech companies.

CNBC had reported that Authentic Brands was seeking a valuation of about $10 billion in its public debut.

The transaction with CVC and HPS is expected to close in December, at which point the PE firm and hedge fund will each retain a seat on Authentic Brands’ board of directors.

“We plan to work closely with the ABG team to execute on their strategic priorities, particularly around international expansion,” said Chris Baldwin, a managing partner at CVC.

BlackRock will keep its position as Authentic Brands’ largest shareholder, which it has held since 2019, the company said. Existing investors including U.S. mall owner Simon Property Group, General Atlantic, Leonard Green & Partners, Brookfield and basketball star Shaquille O’Neal will hold on to their equity positions.

When it filed to go public, Authentic Brands reported that its net income in 2020 jumped to $211 million from $72.5 million a year earlier, while its revenue rose about 2% to $489 million.

“We have the same playbook today as we had yesterday,” said Salter. “You’ll hear about more acquisitions by the end of this year.”

CVC recently struck a deal to buy Unilever’s tea business. Some of the firm’s other portfolio companies include streetwear brand A Bathing Ape and pet goods chain Petco, according to its website. HPS spun out of J.P. Morgan Asset Management in 2016.

Correction: This article has been updated to reflect that the deal values the company at $12.7 billion and to correct the spelling of Chris Baldwin’s name.

Next Post

Seven High Frequency Indicators for the Economy

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:

By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

Popular Posts

Breaking News

Malaysia’s fourth quarter will be ‘the challenge’ for its economy, says finance minister

by
August 15, 2022
0

The fourth quarter will be "the challenge" for Malaysia's economy if global headwinds such as Russia's war on Ukraine and...

Read more

Malaysia’s fourth quarter will be ‘the challenge’ for its economy, says finance minister

China Shocks With Rate Cut as Data Show ‘Alarming’ Slowdown

Don’t Give Up on the Chip Makers. These 9 Stocks Look Like Bargains.

Personalized coffees and prestige skincare: Consumers snap up premium items despite inflation crisis

China’s domestic tourism is on track to bounce back from pandemic lows, says Fitch Ratings

Personalized coffees and prestige skincare: Consumers snap up premium items despite inflation crisis

Load More

All rights reserved by www.toptradingstrategy.net

  • Home
  • Breaking News
  • Privacy Policy
  • Email Whitelisting
No Result
View All Result
  • Home
  • Breaking News
  • Privacy Policy
  • Email Whitelisting

© 2022 JNews - Premium WordPress news & magazine theme by Jegtheme.