default-output-block.skip-main
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

CVC Invests in Forever 21 Owner at $13 Billion Enterprise Value

Authentic Brands Group files for IPO taking Forever 21 owner public. Shutterstock.
Authentic Brands Group Inc. now has an enterprise value of $12.7 billion, according to a statement. Shutterstock.

CVC Capital Partners and HPS Investment Partners have agreed to purchase significant equity stakes in Authentic Brands Group Inc., giving the owner of labels such as Forever 21 and Brooks Brothers an enterprise value of $12.7 billion, according to a statement.

The transaction, expected to close next month, will give the two private equity firms seats on ABG’s board, the New York-based company said in the statement.

Founded in 2010 by Jamie Salter, ABG has grown to manage more than 30 brands that are diversified across fashion, media, entertainment and celebrities. A $2.4 billion deal announced in August to acquire Reebok from Adidas AG will bring ABG’s portfolio to more than $20 billion in annual system-wide retail sales across 150 countries, the company said. The Reebok acquisition is expected to close in the first quarter of 2022.

The commitment from CVC and HPS “is a testament to the exceptional work our team has put forth” and shows their “confidence in our future growth,” chairman and chief executive officer Salter said in the statement. The company will further its global presence through acquisitions and organic growth, President Nick Woodhouse said.

ABG filed in July for an initial public offering on the New York Stock Exchange, with a proposal to raise $100 million. That IPO is now delayed to 2023 or 2024, the company said. Bloomberg News reported in May that the company could be worth about $10 billion in an IPO.

Other brands owned by ABG include Nine West, Spyder, Nautica, Barneys New York, Eddie Bauer and Prince. This month, ABG teamed up with Universal Music Group to acquire and actively manage artist brands together.

BlackRock Long-Term Private Capital will remain AGB’s largest shareholder, a position it has held since 2019. Investors including Shaquille O’Neal, Simon, General Atlantic, GIC, Brookfield, Lion Capital, Leonard Green & Partners and Jasper Ridge Partners will continue to hold “significant equity positions,” according to the statement.

Learn more:

Forever 21 Hires New CEO From H&M

Daniel Kulle, former president of H&M’s North American operations, has been brought in to revive the bankrupt fast-fashion retailer, which was recently bought by a consortium of investors, including Barneys-owner Authentic Brands Group, for $81 million.

In This Article

© 2021 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
© 2022 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions and Privacy policy.