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Brooks Brothers, the company behind brands like Eddie Bauer and Sports Illustrated magazine, plans to delay its initial public offering after receiving a major new investment from two private-equity firms.

Authentic Brands Group LLC, which develops and licenses its brands to retail operators, said Monday it sold stake to CVC Capital Partners and HPS Investment Partners in a deal that values ​​the company at $12.7 billion, including debt. is included.


According to people familiar with the matter, the investment will provide about $3.5 billion in new capital for Authentic Brands, with the largest chunk coming from CVC. The total also includes additional funds coming in from existing investors, one of the people said.

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It could not be determined what percentage of the CVC and HPS would own the company.

Authentic Brands, which in July filed paperwork to launch an offering that would have listed its shares on the New York Stock Exchange, said it plans to close the IPO by 2023 or 2024.

“ABG’s goals haven’t changed at all,” a company spokesperson said. “We pursued an IPO so that we can bring value to ABG and its shareholders. We are achieving exactly that with the onboarding of new equity partners.”

Authentic Brands said the shares owned by CVC and HPS will be sold by some of its existing shareholders. black Rock Inc. NS BLK 0.48% The private-equity business will continue to own the largest share of authentic brands. Other shareholders include Simon Property Group Inc., SPG 0.75% Leonard Green & Partners, Singapore sovereign-wealth fund GIC Pte. Ltd. and former NBA star Shaquille O’Neal, whose personal branding manages Authentic Brands.

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Last year, authentic brands logged $488.9 million in revenue, up 1.8% year over year, despite the coronavirus pandemic’s hit to traditional shopping. Its net income after distributions to non-controlling owners was $211 million.

Authentic Brands, along with the real-estate arm of Simon & Brookfield Asset Management Inc., Bought Forever 21 Inc. After it went bankrupt last year. in the summer, also agree to buy reebok from adidas ag

Authentic Brands owns the intellectual property of its brand, which controls the marketing and development. It deals with hundreds of licensees who source products, manage inventory and operate retail stores. The licensees of the Authentic brand have around 6,000 stores, with e-commerce sales accounting for about 18% of the gross merchandise value last year.