CVC and HPS purchase stake in Genuine Manufacturers valued at $ 12.7 billion

© Reuters. A Forever 21 store is pictured in Times Square following the coronavirus disease (COVID-19) outbreak in the Manhattan neighborhood of New York City, New York, United States, on March 23, 2020. REUTERS / Carlo Allegri

(Reuters) – Authentic Brands Group Inc (ABG) said on Monday that private equity firms CVC Capital Partners and HPS Investment Partners had agreed to acquire a significant stake in a transaction that raised the brand developer with US $ 12.7 billion. Dollar valued on an enterprise value basis.

The owner of Forever 21 has also postponed its US IPO, announced in July, to a date in 2023 or 2024, CNBC reported -shelves- ipo-to-sell-12point7-billion-stake-to-investors.html, citing an interview with the Chief Executive Officer.

ABG did not immediately respond to a Reuters query about its IPO.

In 11 years ABG has collected more than 30 labels, which are sold in around 6,000 stores. The brands include clothing chains Aéropostale and Van Heusen as well as Sports Illustrated magazine.

In August it was agreed to buy the sportswear brand Reebok from Adidas (OTC 🙂 for up to 2.1 billion euros (2.5 billion US dollars).

Following the closing of the deal, which is expected in December, CVC and HPS will join ABG's board of directors, according to a company statement.

BlackRock (NYSE 🙂 Long Term Private Capital will remain ABG's largest shareholder and other shareholders such as Shaquille O'Neal will continue to hold equity positions.

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