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12/2021

CVC & HPS INVESTMENT PARTNERS take majority stake in AUTHENTIC BRANDS GROUP

UNITED STATES Consumer Products / Fashion & Apparel EV $10–25bn

Context

Authentic Brands Group has been acquired by CVC Capital Partners and HPS Investment Partners through the purchase of significant equity stakes from existing shareholders. The definitive agreements were signed in November 2021, and the transaction is expected to close in December 2021 following customary regulatory approvals and closing conditions. The acquisition adds two new investors to ABG's capital structure while retaining BlackRock Long Term Private Capital as the largest shareholder. The investors intend to support ABG's expansion by providing capital and strategic resources that complement the company's brand licensing platform. CVC brings experience in consumer and media sectors, while HPS contributes credit expertise and financing flexibility. Both firms plan to work closely with ABG's management to accelerate international market penetration, enhance digital commerce capabilities, and identify additional brand acquisition opportunities. Post‑closing, the partnership is expected to enable ABG to scale its licensing operations, broaden its global distribution network, and increase the efficiency of its brand integration processes. Board representation by CVC and HPS will facilitate alignment on growth initiatives, while the additional capital is slated for use in targeted acquisitions, technology investments, and expansion of the company's e‑commerce and specialty retail channels.

As a reminder, Authentic Brands Group had previously acquired Reebok International in 2021 as part of its expansion strategy.

AUTHENTIC BRANDS GROUP, which reported an EBITDA margin of [members only] in 2020, is valued in this transaction at an EV/EBITDA multiple of Above 20x, a level significantly higher than the average currently observed in the Retail & Consumer sector (11.9x).

-> Deep-dive in Retail & Consumer market trends

Target

Authentic Brands Group is a US-based brand management company that acquires and monetizes consumer brands across apparel, footwear, lifestyle, and related categories. Rather than operating as a traditional retailer or manufacturer, the company typically builds value through intellectual property ownership, licensing, and partnerships with operating companies that handle production and distribution. Its portfolio includes a mix of heritage and mass-market brands, giving it a broad platform across consumer segments. The company’s model is centered on brand stewardship, global reach, and scalable royalty generation. By leveraging recognizable names and delegating operational execution to licensees, Authentic can pursue portfolio expansion with limited capital intensity compared with vertically integrated consumer businesses. This structure has made it a recurring consolidator in branded consumer assets.

Ent. Value

$10–25bn

Equity Value

[members only]

Multiples

EV / Revenue

[members only]

EV / EBITDA

Above 20x

EV / EBIT

[members only]

Historical Financials (USD)

Year
Rev
EBITDA
EBIT
2020
[members only]
$250–500M
[members only]
2019
[members only]
$250–500M
[members only]

Other operations with AUTHENTIC BRANDS GROUP

Other operations with AUTHENTIC BRANDS GROUP

List of similar M&A transactions (Date, Acquirer, Target, Country, Sub-sector)
DateAcquirerTargetCountrySector
05/2025AUTHENTIC BRANDS GROUPDOCKERSUNITED STATESFashion & Apparel
08/2021AUTHENTIC BRANDS GROUPREEBOK INTERNATIONALUNITED STATESOther Sports

REFERENCES

Valuation range: EV $10–25bn

EBITDA range: $250–500M

EV/EBITDA range: Above 20x

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of AUTHENTIC BRANDS GROUP by CVC / HPS INVESTMENT PARTNERS are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Target: authentic brands group

Acquirer: hps investment partners / cvc