CVC Capital Partners and HPS Investment Partners’ Acquisition of Authentic Brands Group

Skadden, Arps, Slate, Meagher & Flom represented HPS Investment Partners, while Latham & Watkins represented ABG in the transaction.

Authentic Brands Group (“ABG”), a global brand development, marketing and entertainment company, today announces that funds advised by CVC Capital Partners (“CVC”) and HPS Investment Partners (“HPS”) have signed definitive agreements to purchase significant equity stakes in the company from certain current ABG shareholders. The transaction values the company at $12.7 billion in enterprise value.

Since its founding in 2010, ABG has experienced significant growth by implementing a proven playbook that connects strong brands with best-in-class licensees and a network of partners to optimize value in the marketplace. ABG’s portfolio has grown to more than 30 brands that are diversified across the fashion, luxury, outdoor, home, entertainment, events, media and fine arts sectors. The acquisition of Reebok, which closes in Q1 of 2022, will bring ABG’s portfolio to more than $20 billion in annual system-wide retail sales with global distribution in more than 150 countries and highlights ABG’s ability to successfully integrate world-class brands into its unique platform.

BlackRock Long Term Private Capital will retain its position as ABG’s largest shareholder, which it has held since 2019. Simon, General Atlantic, Leonard Green & Partners, GIC, Brookfield, Lion Capital, Jasper Ridge Partners and Shaquille O’Neal will continue to hold significant equity positions in the company. Upon closing of the transaction, which is expected in December 2021, CVC and HPS will join ABG’s Board of Directors.

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.

HPS Investment Partners is a leading global investment firm that seeks to provide creative capital solutions and generate attractive risk-adjusted returns for its clients.

Established in 1981, CVC is a world leader in private equity and credit with $117.8 billion of assets under management, $161.9 billion of funds committed and a global network of 23 local offices: 15 across Europe and the Americas and nine in the Asia Pacific region.

In connection with the transaction, BofA Securities, Inc. was the M&A advisor for ABG. BofA Securities, Inc. and Goldman Sachs & Co. LLC also acted as financial advisors for ABG. 

The Skadden team included M&A partner Blair Thetford (Picture; New York) and counsel Peter Jones (Palo Alto); and Tax partner Steven Matays (New York).

Involved fees earner: Peter Jones – Skadden Arps Slate Meager & Flom; Steven Matays – Skadden Arps Slate Meager & Flom; Blair Thetford – Skadden Arps Slate Meager & Flom;

Law Firms: Skadden Arps Slate Meager & Flom;

Clients: HPS Investment Partners LLC;