Authentic Brands Group, an American brand management company, has decided to postpone its initial public offering. The company will now be selling a large number of equity stakes in its business to private equity firm CVC Capital, hedge fund HPS Investment Partners as well as a group of existing stakeholders. The agreement grants the company a USD12.7 Billion enterprise value.
By adding the new shareholders, Authentic Brands will be able to continue to operate as a private company, as it has done for the last decade. The company actively acquires struggling brands and brings them in-house to improve and later re-launch them. Authentic Brand’s global portfolio has labels ranging from “media, entertainment, luxe, fashion, street, wellness, home, active and outdoor lifestyle sectors,” according to the company’s website.
“We’re free to do whatever we want. We just made a deal for Iconic Images last week and Reebok closes on Feb. 28. And we expect to make a significant acquisition before the end of the year,” ABG Founder and CEO Jamie Salter said in an exclusive interview granted to WWD, which also served as a de-facto press release. “We [had] pursued an IPO so that we could bring value to ABG and its shareholders. We are achieving exactly that with the onboarding of new equity partners,” Salter added..
The company originally filed for an IPO in July. However, amid the new deal, the IPO date will now be pushed anywhere from 2023 to 2024, according to Salter.
“The IPO climate is ridiculous,” Salter said in a phone interview. “I think we would have gotten a massive valuation … maybe even more than what we sold the business for. But guess what? I’d rather be private.”