The US fashion and media group Authentic Brands Group LLC (ABG) has pushed ahead with its plans for the sporting goods brand Reebok. On Thursday evening, he announced the conclusion of a long-term agreement with the Chinese clothing company Tristate Holdings Limited.
According to ABG, Tristate will receive the main license for Reebok in China, Hong Kong, Macau and Taiwan and will in future manage the label’s brick-and-mortar stores, online business and wholesale sales in the respective markets. The license therefore includes shoes and clothing for women, men and children. With the agreement, both groups expanded their existing cooperation: Tristate already operates the China business of other brands belonging to ABG such as Nautica and Spyder.
The agreement is the next step in the Group’s efforts to build new structures in advance of the Reebok acquisition. Shortly before Christmas, ABG had already signed a sales partnership with the British retail group JD Sports, which provides for an expansion of the Reebok ranges at the chains belonging to the JD Group.
Last summer, ABG reached an agreement with the German sporting goods retailer Adidas AG to purchase the brand. It was agreed that ABG would pay the Herzogenaurach-based company 2.1 billion euros for Reebok. The transaction is expected to close in the first quarter of this year.
For the time being, the group is foregoing the long-planned IPO
Reebok was not the only well-known acquisition that the expanding group was able to announce last year: It took over the Van Heusen, Izod, Arrow and Geoffrey Beene brands from the PVH Group, and ABG also secured the Eddie Bauer outdoor label. The portfolio now includes more than thirty brands, including clothing providers Aéropostale, Forever 21, Juicy Couture, Lucky Brand and Volcom.
However, the company has since withdrawn from a planned IPO after submitting the relevant approval documents to the relevant regulatory authority, the United States Securities and Exchange Commission (SEC), in the summer. On Wednesday, ABG withdrew the relevant application. No reasons for the decision were given in a letter to the SEC. The group last secured the support of new well-known investors in November. The largest shareholder is the US financial company Blackrock.