ABG Announces New Investors, Delays IPO
Authentic Brands Group, the owner of Volcom and a wide range of other brands, announced two major new investors in its business on Monday.
As a result, the company said it is delaying its IPO for several years.
CVC Capital Partners and HPS Investment Partners are buying “significant equity stakes” in ABG, the company said. The deal values ABG at $12.7 billion.
CEO Jamie Salter told WWD that while he remains the largest individual shareholder, private equity firms have bigger stakes.
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.
The new deal allowed some investors to take money off the table, which had been the goal of the IPO, Salter told WWD. Now, 50% of ABG’s investors are new money and 50% are old money.
ABG is in the process of buying Reebok for approximately $2.5 billion, a deal that is expected to close in February.
ABG owns over 30 brands including Eddie Bauer, Nautica, Lucky, Sports Illustrated, Spyder and Nine West.