US' Authentic Brands Group acquires Vince's intellectual property

26 May '23

2 min read

Pic: Authentic Brands Group

Insights

Authentic Brands Group has acquired the intellectual property of Vince.
Under the agreement, Vince Holding Corp has contributed the Vince intellectual property to a newly formed subsidiary, ABG Vince.
Vince will serve as the licensing partner for the brand's core categories and manage its retail stores, wholesale accounts, and e-commerce operations.

Authentic Brands Group (Authentic), a global brand development, marketing and entertainment platform, has completed the acquisition of the intellectual property of the Vince brand. Through the agreement, Vince Holding Corp has contributed the Vince intellectual property to a newly formed Authentic subsidiary, ABG Vince, of which Authentic owns a majority stake of 75 per cent, while Vince retains 25 per cent ownership.

"We are thrilled to officially welcome Vince into the Authentic fold,” said Jamie Salter, founder, chairman and CEO of Authentic. "The addition of Vince reinforces our position in the luxury sportswear market. Authentic’s proprietary platform and global network of best-in-class partners together with the visionary expertise of the Vince Holding team positions the brand for continued global expansion and success.”

In connection with the acquisition, Authentic has also completed an exclusive, long-term agreement with Vince, which is now the licensing partner for the brand’s core categories, and will manage its 60-plus retail stores, current wholesale accounts and e-commerce operations. Working closely with the Vince team, Authentic will take a page from its proven playbook, which connects strong brands with best-in-class partners and a global network of operators, distributors and retailers to optimise value in the marketplace.

“We are pleased to have successfully closed this transaction with Authentic marking a transformative milestone for Vince,” said Jack Schwefel, chief executive officer of Vince “With the proceeds from this transaction, we strengthened our financial foundation by repaying in full the outstanding balance of $27.7 million under our Term Loan Credit Facility as well as a portion of the outstanding borrowings under our Revolving Credit Facility. With a stronger balance sheet in place, we are now better positioned to enhance our focus on driving margin expansion and executing against our strategic growth initiatives.”

Fibre2Fashion News Desk (KD)

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