(Crystal Tse, Lauren Coleman-Lochner / WP Bloomberg) – The Authentic Brands Group, which owns brands such as Brooks Brothers, Jucy Couture and Forever 21, analyzed an entry on the stock exchange later this year, according to sources close to the company.
Sources said the New York-based group discussed with potential advisors about the initial public offering.
The company expects a US $ 10 billion appreciation at the closing of the IPO. His plans are not yet conclusive and the size and value of the business may still change. In 2019, the company was valued at more than $ 4 billion, including debt, in a $ 875 million investment made by BlackRock Inc.
Founded and administered by Jamie Salter, Authentic brand Acquired more than 30 brands over the years, including the unsuccessful luxury department store Barneys New York.
Salter founded Authentic with $ 250 million in 2010, when he began acquiring celebrity and niche brands, including rights to names such as Elvis Presley and Marilyn Monroe. when Universal epidemic Arriving in the country, the group had revenues of around US $ 15 billion and owned brands such as Sports Illustrated and Nine West. In an interview in August, Salter said in those days that he was not looking for deals worth less than $ 1 billion.
For years Salter avoided stores that were operational, preferring to buy only intellectual property rights from unsuccessful merchants.
This changed in 2016, when they together with the two largest mall owners in the United States acquired Aropostale, a fashion retailer. Along with a series of bankruptcies, new transactions were carried out, including last year’s purchase of Forever 21, which was also in the process of judicial restructuring.
Brookfield Property Partners LP recently traded its stake in Forever 21 for the title of Authentic Brands, which now owns the store with Simon Property Group Inc., a shopping center operator.
Now the company is also focusing on more robust stores. His last acquisition was the same month when he bought clothing manufacturer Eddie Bauer of the private equity firm Golden Gate Capital. The purchase was made in conjunction with SPARC Group LLC, its joint venture with Simon.
The company is also backed by investors such as Blackrock, General Atlantic and Leonard Green & Partners.
Even before the epidemic-caused disruption, a retail crisis was underway, with dozens of retail bankruptcies leading to the closure of thousands of stores. Salter said he is committed to maintaining the physical presence of the stores.
“If we have a store base in the United States, it will help us build a brand of multiple categories and more stores globally,” he said last year. Furthermore, maintaining the store base makes our e-commerce strategy easier. “
(Translation by Terezinha Martino)