Authentic Brands Group is growing again.
The fashion megafirm has added Izod, Van Heusen, Geoffery Beene and Arrow to its portfolio through a $220 million acquisition of PVH Corp.’s Heritage Brands group. The deal is expected to close in the third quarter.
“This acquisition was particularly attractive because of PVH’s well-established partnerships for these heritage brands,” said Jamie Salter, founder, chairman and CEO of ABG, in a statement. “Each brand has strong consumer recognition, global distribution anchored at leading retailers and robust product programs with best-in-class licensing partners. We believe there are significant opportunities to tap into the brands’ rich histories and to further grow their presence around the world.”
PVH CEO Stefan Larsson said in a separate statement that selling the business to ABG “was a difficult decision” but that ABG is in a good position to develop the brands further.
“We have been proactively optimizing our Heritage Brands business over the past few years, while focusing on allocating resources to higher-return businesses to maximize shareholder value,” Larsson said.
According to ABG, the Heritage Brands group has 60 global licensing partners in sportswear, dress furnishings, denim, footwear, accessories, fragrance, home and other categories. PVH said that Centric Brands and United Legwear & Apparel Company will operate parts of the Izod, Van Heusen and Arrow sportswear businesses through licenses.
Growth has been a priority for ABG for years and Salter has said he plans to make the company a $30 billion business. ABG has been rumored to be interested in purchasing Reebok from Adidas; after nearly two years of speculation on Reebok’s fate, no deal has been announced yet.
The company received a $875 million investment from private equity firm BlackRock in 2019.