Authentic Brands Group puts IPO on hold
Authentic Brands Group (ABG), the parent company of Forever 21, Barneys New York and Nine West, has put its plans for an IPO on hold as it secured new investment.
Funds from CVC Capital Partners (CVC) and HPS Investment Partners (HPS) have signed definitive agreements to purchase significant equity stakes in the company, valuing the group at 12.7 billion dollars. With these new investors on board, the Group now plans to delay its IPO plans, which it had first announced back in July 2021. The deal is expected to close in December.
Jamie Salter, Founder, Chairman and CEO of ABG said in a statement: “We have known CVC and HPS for many years and are thrilled that they are coming on board as significant stakeholders in ABG. The entire ABG team - from our leadership to the director of first impressions - has done an incredible job of building a sustainable and scalable business with a laser focus on brand development, digital innovation, e-commerce, specialty retail, expansion into new verticals and proven business models.”
A company spokesperson stated, per media reports: “We pursued an IPO so that we could bring value to ABG and its shareholders. We are achieving exactly that with the onboarding of new equity partners.”