In another acquisition move, Authentic Brands Group (ABG), a global brand development, marketing and entertainment platform that owns more than 40 lifestyle, entertainment and media brands, including Reebok, Eddie Bauer, and Spyder, announced on April 24 that it has entered into a definitive agreement with Vince Holding Corp. (VNCE) to acquire the Vince brand intellectual property and the majority interest in a newly formed subsidiary.
Under the agreement, for a total consideration to Vince of $76.5 million in cash from Authentic, VNCE will contribute its intellectual property to the newly formed ABG Vince, of which Authentic will own a majority stake of 75 percent, while Vince Holding Corp. will retain 25 percent ownership.
The transaction also includes an exclusive, long-term licensing agreement between VNCE and Authentic to operate VNCE’s existing business in a manner consistent with its current operations, with a royalty fee to ABG Vince. VNCE will receive a quarterly distribution equal to 25 percent of ABG Vince’s net cash. The License Agreement contains an initial ten-year term and eight ten-year renewal options. The current Vince store footprint will stay intact and Authentic plans to expand the brand in key luxury markets and categories.
Established over two decades ago, Vince sells premium-priced women’s and men’s wear, footwear and accessories through retail stores, wholesale accounts, a newly re-platformed e-commerce site and rental subscription service, Vince Unfold.
Last month, ABG confirmed it would acquire Boardriders, the owner of Quiksilver, Billabong, and other brands.
The transactions are subject to customary closing conditions and are expected to close within 30 days.
