Global premium branded consumer platform Differential Brands Group (DFBG) has signed a definitive purchase agreement to acquire a significant stake in Global Brands Group Holding’s (GBG) North American licencing business for $1.38bn.
GBG’s North American licencing business comprises of various 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.
The acquisition will create a leading North American consumer platform generating revenues in excess of $2.3bn.
GBG North America current president Jason Rabin said: “We are thrilled to join Differential Brands Group and lead our combined platform by leveraging our expansive infrastructure, distribution and sourcing networks to drive growth, and we look forward to working with the Differential management team and Tengram to help support the company’s growth as it capitalises on promising market opportunities.”
DFBG board of directors chairman William Sweedler added: “Jason and his team plan to invest significant capital into this transaction, which will transform Differential into a large-scale North American branded platform.
“We are confident this transaction will create tremendous value for our stockholders, as well as provide enhanced opportunities in North America for our brands and business partners.”
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The purchase price for the transaction will be paid in cash, which is scheduled to close in the third quarter this year. It is subject to satisfaction or waiver of various customary closing conditions.
Ares Capital Management, HPS Investment Partners and GSO Capital Partners are providing financial support to fund the transaction.