CVC, HPS investment firms acquire ownership stakes in US' ABG

“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. “The entire ABG team - from our leadership to the director of first impressions - has done an incredible job of building a sustainable and scalable business with a laser focus on brand development, digital innovation, e-commerce, specialty retail, expansion into new verticals and proven business models.”

Since its founding in 2010, ABG has experienced significant growth by implementing a proven playbook that connects strong brands with best-in-class licensees and a network of partners to optimise value in the marketplace. ABG’s portfolio has grown to more than 30 brands that are diversified across the fashion, luxury, outdoor, home, entertainment, events, media and fine arts sectors.

The acquisition of Reebok, which closes in Q1 of 2022, will bring ABG’s portfolio to more than $20 billion in annual system-wide retail sales with global distribution in more than 150 countries and highlights ABG’s ability to successfully integrate world-class brands into its unique platform, the company said in a media release.

“The power of the ABG platform is evident in its growth to date, and we believe the company is only beginning to realise the full benefit of its scale and diversification,” said Chris Stadler, a managing partner at CVC.

“We are thrilled to partner with Jamie and his outstanding team, who we have known for nearly a decade, to support ABG’s ongoing development and growth strategy as it continues to lead the market in the brand licensing arena, underpinned by a highly differentiated and innovative acquisition and brand management platform,” said Scot French, a governing partner of HPS.

BlackRock Long Term Private Capital will retain its position as ABG’s largest shareholder, which it has held since 2019. Simon, General Atlantic, Leonard Green & Partners, GIC, Brookfield, Lion Capital, Jasper Ridge Partners and Shaquille O’Neal will continue to hold significant equity positions in the company.

Upon closing of the transaction, which is expected in December 2021, CVC and HPS will join ABG’s board of directors.

Fibre2Fashion News Desk (KD)