Under the terms of the agreement, Authentic Brands Group will own a majority stake of 75 per cent membership interest in ABG Vince, while Vince Holding will retain a 25 per cent membership interest. In addition, Vince Holding will enter into an exclusive, long-term license agreement with Authentic Brands Group to use the contributed intellectual property for its existing business in a manner consistent with its current wholesale, retail, and e-commerce operations, Vince Holding said in a media release.
American firm Vince Holding Corp has announced a strategic partnership with Authentic Brands Group (ABG) in a $76.5 million deal.
The agreement will see Vince contribute its intellectual property to ABG Vince, while Vince Holding will retain a 25 per cent membership interest.
The transaction is expected to close in the second quarter of 2023.
Vince Holding will pay a royalty fee to ABG Vince and will receive a quarterly distribution equal to 25 per cent of ABG Vince’s net cash. The license agreement contains an initial ten-year term and eight ten-year renewal options, allowing Vince Holding to renew the agreement. Vince Holding will remain a publicly traded entity and continue its existing operations with no changes to management or board of directors’ composition.
The transaction is expected to close within the second quarter of calendar 2023 and is subject to customary closing conditions. Solomon Partners is serving as financial advisor and Ropes & Gray LLP is serving as legal advisor to Vince Holding for this transaction. Katten Muchin Rosenman LLP is serving as legal advisor to Authentic Brands Group.
Fibre2Fashion News Desk (DP)
