ABG Delays IPO After CVC and HPS Purchase Stakes in the Company

Authentic Brands Group just secured a set of major investments.

CVC Capital Partners (CVC) and HPS Investment Partners (HPS) have signed deals to purchase significant equity stakes in the retail and brand powerhouse. The deal values the company at $12.7 billion.

After these investments, BlackRock Long Term Private Capital is still ABG’s largest shareholder. Other shareholders include Simon, General Atlantic, Leonard Green & Partners, GIC, Brookfield, Lion Capital, Jasper Ridge Partners and Shaquille O’Neal.

ABG is the company behind dozens of brand and retailer acquisitions, including Forever 21, Barneys New York and J.C. Penney and most recently, the Reebok brand. The company will be awarded Company of the Year in Footwear News’ Annual Achievement Awards in New York next week. 

“We have known CVC and HPS for many years and are thrilled that they are coming on board as significant stakeholders in ABG. Their commitment is a testament to the exceptional work our team has put forth as well as CVC and HPS’s confidence in our future growth,” 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.”

The new investments will further delay plans for the company to launch an IPO, which it filed for in July. In an interview with FN’s sister publication WWD, Salter confirmed that ABG will push its IPO “to sometime in 2023 or 2024” as a result of the recent investments. He added that the new investments are still in line with ABG’s growth strategy to bring bring value to its shareholders, which can be accomplished with an IPO or via new investments.

Salter told WWD that he is still the largest individual shareholder in the company, which he founded in 2010. Since then, the company has grown its portfolio to include more than 30 brands. In addition to the Reebok deal, ABG plans to purchase another undisclosed fashion brand in Q1 of 2022, WWD reported.

“The investments from CVC Capital and HPS Investment Partners are a strong vote of confidence in ABG’s long-term vision and strategic approach,” said Nick Woodhouse, president and CMO of ABG. “We are primed to continue furthering our global presence, acquiring new entertainment and lifestyle brands and driving organic growth for our portfolio.”

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