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Authentic completes Vince acquisition, enters licensing agreement

By Rachel Douglass


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Image: Vince

Authentic Brands Group has announced the finalisation of its acquisition for Vince Holding Corp (VNCE), through which it has formed a new subsidiary for the brand’s intellectual property, ABG Vince.

The arrangement consisted of a total consideration to VNCE of 76.5 million dollars in cash from Authentic and 25 percent membership in the subsidiary, while Authentic will own a 75 percent majority stake.

In a release, Jack Schwefel, CEO of VNCE, called the transaction a “transformative milestone for Vince”, adding: “With the proceeds from this transaction, we strengthened our financial foundation by repaying in full the outstanding balance of 27.7 million dollars under our Term Loan Credit Facility as well as a portion of the outstanding borrowings under our Revolving Credit Facility.

“With a stronger balance sheet in place, we are now better positioned to enhance our focus on driving margin expansion and executing against our strategic growth initiatives.”

As part of the acquisition, Authentic has secured the rights to use VNCE’s intellectual property from its existing business in the form of a long-term licensing agreement, which spans over an initial ten-year term with eight renewal options.

The deal covers the brand’s core categories and will see Authentic manage VNCE’s 60-plus retail stores, current wholesale accounts and e-commerce operations.

Speaking on the acquisition, Jamie Salter, founder, chairman and CEO of Authentic, said: "We are thrilled to officially welcome Vince into the Authentic fold. Together with the visionary expertise of the Vince team, we are poised for the brand's category and global expansion.

"We look forward to engaging with new brand fans as we capture audiences, broaden the brand’s range and enter this next phase of Vince’s growth.”

Authentic Brands Group
Mergers and acquisitions