Authentic Brands Group (ABG) has revealed its strategic collaboration with Vince Holdings, resulting in the acquisition of the Vince brand intellectual property. This $76.5 million transaction grants ABG a 75% stake in the newly formed subsidiary, ABG Vince.
Vince Holdings intends to utilize the proceeds generated from this partnership with Authentic Brands Group to bolster its overall financial standing and enhance its working capital.
Jack Schwefel, the CEO of Vince, expressed enthusiasm about the transformative partnership, stating, “We are pleased to enter into this strategic alliance with Authentic, which will provide us with the necessary capital to fortify our financial foundation. This will enable us to focus on initiatives aimed at driving margin expansion, such as leveraging our enhanced e-commerce capabilities and CDP platform, expanding our international presence, growing our men’s business, and selectively opening new retail locations in the United States. Additionally, this partnership will allow us to benefit from Authentic’s expertise and Lifestyle and Entertainment platforms, offering opportunities to expand the Vince brand into new product categories and geographic regions.”
Jamie Salter, founder, chairman, and CEO of Authentic Brands Group, also expressed excitement about the partnership, saying, “We are excited to partner with Jack and the Vince management team, as we anticipate mutual benefits from the strength of the Vince brand, which has been developed over the past 20 years. The addition of another luxury brand to our formidable portfolio is timely, given the increasing demand for luxury goods in key markets worldwide.”
Importantly, Vince Holdings will remain a publicly-traded entity, and there will be no changes to the composition of its management or board of directors.
The transaction is anticipated to conclude during the second quarter of the 2023 calendar year, subject to customary closing conditions.
