Global investment firms CVC Capital Partners and HPS Investment Partners have agreed to purchase equity stakes in brand management firm and Authentic Brands Group (ABG) from existing shareholders.
The deal values ABG at an enterprise value of $12.7bn.
Founded in 2010, ABG owns a portfolio of more than 30 brands from various sectors, including fashion, luxury, outdoor, home, entertainment, events, media and fine arts.
The company is scheduled to close the acquisition of Reebok in the first quarter of next year.
It will take ABG’s annual system-wide retail sales to more than $20bn.
ABG founder, chairman and CEO Jamie Salter said: “We have known CVC and HPS for many years and are thrilled that they are coming on board as significant stakeholders in ABG. Their commitment is a testament to the exceptional work our team has put forth, as well as CVC and HPS’s confidence in our future growth.
“The entire ABG team, from our leadership to the director of first impressions, has done an incredible job of building a sustainable and scalable business with a laser focus on brand development, digital innovation, e-commerce, speciality retail, expansion into new verticals and proven business models.”
CVC and HPS will join ABG’s board of directors after the deal, which is expected to close next month.
Following the deal, BlackRock Long Term Private Capital will continue to hold the largest share in ABG, while Simon, General Atlantic, Leonard Green & Partners, GIC, Brookfield, Lion Capital, Jasper Ridge Partners and Shaquille O’Neal will retain significant equity shares.
BofA Securities and Goldman Sachs & Co. served as the financial advisers for ABG during the process.