US-based Authentic Brands Group (ABG) is becoming a growing powerhouse in the fashion industry, thanks in part to the various acquisitions it has made in recent years. The group appears to be pursuing a buy-and-build strategy and already has over 40 brands in its portfolio. In case you’ve lost track of recent acquisitions, FashionUnited has summarized them for you here. There are currently unconfirmed reports in the media that Authentic Brands Group has its eyes on British footwear brand Hunter and fashion group Boardriders. However, those deals don’t seem to be finalized yet.
2022: Ted Baker
The latest confirmed deal is the acquisition of Ted Baker. The US group acquired the British brand for 211 million pounds sterling, around 249 million euros, via its subsidiary ABG-Robin Bidco. The offer came in August 2022, although rumors of a takeover by Ted Baker Plc were first heard in March 2022. At this point it was clear that Sycamore Partners Management LP wanted to make a takeover bid for Ted Baker. A little later it turns out that Ted Baker Plc has rejected not just one, but two of these offers. With more companies expressing interest in Ted Baker, the brand decided to begin a formal sales process. After months, the Authentic Brands Group emerges as the winner.
Under Authentic Brands Group, Ted Baker is set to be restructured to maximize the brand’s potential. ABG sees opportunities for Ted Baker in North America and aims to accelerate the brand’s growth globally.
2021: Reebok
A year earlier, in August 2021, Authentic Brands Group acquired the Reebok brand from Adidas AG. ABG offers a whopping 2.1 billion euros for the brand. Reebok is Adidas’ problem child at this point.
“We believe that with this change in ownership, Reebok is well positioned for long-term success. At Adidas, we will continue to focus on executing our ‘Own the Game’ strategy, which will ensure we can grow in an attractive market, increase our market share and create sustainable value for all stakeholders,” said Kasper Rorsted, CEO of Adidas AG, on the takeover at the time.
2021: The Heritage Brands of PVH Corp.
In June 2021, Authentic Brands Group will acquire a large number of brands. PVH Corp. wants to focus on the Calvin Klein and Tommy Hilfiger brands and is therefore selling its Heritage Brands division to ABG. These include the Arrow, Izod, Van Heusen and Geoffrey Beene brands.
This acquisition also has its price. ABG will pay $220 million for the companies.
2021: Eddie Bauer
2021 is a big year for Authentic Brands Group. In May 2021, she acquired outdoor brand Eddie Bauer in partnership with Sparc Group, LLC. ABG will own all of the brand’s intellectual property and Sparc will own the brand’s core operations, according to the press release at the time.
“Eddie Bauer has a history spanning over 100 years and is second to none in the outdoor world,” said Jamie Salter, Founder, Chairman and CEO of ABG, in the 2021 press release. “The opportunity in the global outdoor market is at last It has grown exponentially over the past year and we are ready to get off to a flying start and take this brand to new heights in partnership with Sparc.” How much Authentic Brands Group paid for the joint acquisition is unknown.
2020: Brooks Brothers
Authentic Brands Group worked with Sparc Group LLC on an acquisition back in 2020. Together, the two will take over the Brooks Brothers brand. No information was given on the takeover price. Brooks Brothers has a long history and heritage. The brand was founded more than two centuries ago and offers classic menswear. “Brooks Brothers has an amazing history and a strength that endures through generations of loyal customers,” Salter said in a press release at the time. “Together with Sparc we will build on the legacy of the brand and seek to expand the range and reach a larger audience through a global network of stores and partners.”
2020: Lucky jeans
But just days before announcing the Brooks Brothers acquisition, ABG announced the acquisition of the Lucky denim brand. Here, too, the group collaborated with Sparc.
2020: Forever21
In 2020, the fashion brand Forever 21 will be transferred to the hands of Authentic Brands Group, Simon Property Group and Brookfield Property Partners. ABG now owns a total of 37.5 percent. Again, the takeover price was not announced. For ABG, the acquisition of Forever21 is an opportunity to further diversify its portfolio, the press release said.
At the time of the acquisition, Forever21 had been in a difficult position for several months and had already filed for Chapter 11 bankruptcy under the US bankruptcy code. A month before announcing the deal, Forever21 had already announced that it was considering a sale.
ABG says it wants to “breathe new life” into Forever 21. The focus remains on trendy design that can be marketed quickly. Authentic Brands Group also underlines that they want to work towards a more sustainable supply chain for the brand. “The strategy will focus on engaging Gen Z audiences with innovative, creative digital campaigns and impactful collaborations,” the company said in the release.
2019: Barney’s
Iconic US department store Barneys is in trouble in 2019. It goes bankrupt and eventually Authentic Brands Group acquires Barneys’ assets. It also buys the intellectual property rights to the Barneys brand name and most of its inventory.
For ABG, this is an opportunity to add luxury to its portfolio and cement a position in contemporary fashion, according to the 2019 press release.
2018: Nine West and Bandolino
Authentic Brands Group acquires Nine West and Bandolino, among others, from Nine West Holdings, Inc. in 2018. The brands previously filed for Chapter 11 bankruptcy under US bankruptcy laws, which facilitates a restructuring.
Under ABG’s leadership, both Nine West and Bandolino are set to expand into new territories: sportswear, outerwear, swimwear, lingerie, fragrance, sleepwear and home. Expansion into other countries is also on the agenda.
2018: Nautica
In early 2018, Authentic Brands Group acquired the Nautica brand from VF Corp. “The Nautica brand is an iconic, globally recognized brand and Authentic Brands Group is the ideal owner to lead its next phase of growth and success,” said Steve Rendle, CEO of VF Corp. in a press release at the time.
Which brand is next for Authentic Brands Group?
A closer look at the acquisitions of the Authentic Brands Group shows that the US group has been working on making its portfolio as diverse as possible for more than five years. From traditional brands to brands from the luxury segment, everything is represented. Also, the brands that ABG is acquiring are only getting bigger, so there’s a good chance the group has other companies in mind. It remains to be seen who that will be and how the US company’s portfolio will continue to grow.
According to its own website, Authentic Brands Group now has over 40 brands in its portfolio, 355,000 points of sale, 9,800 own stores and sales of $24.5 billion. Converted, this corresponds to a value of 23 billion euros.
This article was published on FashionUnited.nl. Translation and editing: Barbara Russ.