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Authentic Brands Group Files For $10 Billion IPO

Authentic Brands Group has filed for an Initial Public Offering (IPO) that values the global licensing giant at $10 billion.

ABG owns several fashion and sports brands around the world, and has now filed papers stating its intention to sell $100 million worth of stock at a valuation of roughly $10 billion. However, the number of shares to be offered is likely just a benchmark, required by the New York Stock Exchange, and will probably change prior to the IPO.

ABG was founded in 2010 by Jamie Salter, and has grown rapidly to become a behemoth in the global branding and licensing industry. The company now has a portfolio of more than 30 top apparel, sports, and celebrity brands that jointly generate more than $14 billion in retail sales. The company was valued at around $4 billion to $5 billion in its last major financing, when Blackrock invested $875 million for a 30 per cent stake.

ABG’s growth has been largely based on acquiring the brands for celebrities, sporting figures or organizations, and fashion companies. Its portfolio includes: Marilyn Monroe, Elvis Presley, Muhammad Ali, Shaquille O’Neal, Sports Illustrated, Dr. J, Greg Norman, Neil Lane, Thalia, Nautica, Aéropostale, Eddie Bauer, Forever 21, Juicy Couture, Vince Camuto, Herve Leger, Judith Leiber, Barneys New York, Brooks Brothers, Frye, Lucky Brand, Nine West, Jones New York, Frederick’s of Hollywood, Hickey Freeman, Hart Schaffner Marx, Adrienne Vittadini, Bandolino, Spyder, Tretorn, Tapout, Prince, Volcom, Airwalk, Vision Street Wear, Thomasville, Drexel, Henredon and Izod. ABG has also acquired partial ownership of Aéropostale, Forever 21 and JC Penney in partnership with Simon Property Group, which is a mall property company and a major shareholder in ABG.

The other major shareholders at this time include BlackRock, Leonard Green, Lion Capital, General Atlantic, and Salter, who remains the CEO.

Authentic is considered primarily a licensing company because it gets most of its revenue from licensing fees. ABG had net income of $225 million in 2020 on total revenue of $489 million, according to its prospectus. Revenue for the three months ended March 31 rose 32 percent to $160 million from the year earlier quarter.

Bank of America Corp., JPMorgan Chase & Co. and Goldman Sachs Group Inc. are lead underwriters in the IPO. The company plans to trade on the NYSE under the ticker symbol “AUTH.”

Authentic Brands Announces Slate of Executive Promotions


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