Differential Brands Group Inc. (NASDAQ: DFBG), a portfolio of global consumer brands, announced that it has entered into a definitive purchase agreement with Global Brands Group Holding Limited, to acquire a majority of Global Brands’ North American unit. Differential Brands will be acquiring licensed brands such as Disney, Star Wars, Calvin Klein, Under Armour, Tommy Hilfiger, BCBG, bebe, Joe’s, Buffalo David Bitton, Frye, Michael Kors, Cole Haan, and Kenneth Cole from Global Brands for USD 1.38 Billion cash.
The Company said it is anticipating an excess USD 2.3 Billion in pro forma annual revenue.
Certain members of Global Brands existing management team, co-investors, and lenders are also investing in Differential Brands as part of the purchase agreement. The transaction will be financed by Ares Capital Management LLC, HPS Investment Partners LLC, and GSO Capital Partners LP. The deal is expected to close in the third quarter. The Company stated that upon the closing of the deal, Tengram Capital Partners, LP will convert all its preferred stock into the common stock of DBFG.
Differential Brands shares soared during premarket trading on Wednesday, going from 89 cents per share on Tuesday’s close to USD 4.94 per share on Wednesday’s opening, making a 395% jump.