Retail conglomerate Genuine Manufacturers Group readies for summer time IPO
On September 30, 2019, the day after the fashion retailer filed for Chapter 11 bankruptcy protection, people enter a Forever 21 store in a Montebello, California mall.
Frederic J. Brown | AFP | Getty Images
Retail conglomerate Authentic Brands Group is preparing for an IPO, which according to someone familiar with the matter, could happen as early as this summer.
Authentic Brands – which owns companies like Juicy Couture, Brooks Brothers, Aeropostale and Forever 21 – is aiming for a valuation of around $ 10 billion on its IPO, said the person requesting anonymity as discussions remain private. At $ 10 billion, that would mean the market value of Authentic Brands would surpass that of Under Armor, Kohls, Ralph Lauren, and Dick’s Sporting Goods. However, the size of the deal may change as it is ongoing.
Authentic Brands was worth more than $ 4 billion, including debt, when BlackRock invested in the business in 2019.
The official registration statement for the public offering is expected to be filed by Authentic Brands in early July, and the shares could start trading later this month.
A spokesman for Authentic Brands declined to comment.
Since the company’s inception, Authentic Brands founder and CEO Jamie Salter has amassed more than two dozen retail brands, including bankrupt department store chains Barneys New York, Nautica and Nine West.
According to its website, the company currently has more than $ 10 billion in retail sales per year.
Authentic Brands’ strategy over the past few years has included working with two of the largest publicly traded mall owners in the US, Simon Property Group and Brookfield Property Partners. The trio came together in 2016 to purchase teenage clothing retailer Aeropostale out of bankruptcy. You did it again with Forever 21 last year.
Authentic Brands has separately formed a joint venture with Simon called the SPARC Group, which currently operates the businesses of Brooks Brothers, Nautica, Aeropostale, Forever 21 and Lucky Brand.
Authentic Brands and SPARC recently announced that they would acquire Eddie Bauer from the private equity firm Golden Gate Capital.
In addition to BlackRock, Authentic Brands is supported by investors such as General Atlantic and Leonard Green & Partners. BlackRock and General Atlantic declined to comment, while Leonard Green & Partners did not immediately respond to a request for comment.
“I’m in the first inning,” Salter told CNBC in an interview last year. “People ask me, ‘Jamie. Malls retail? I don’t get it.’ … What I’m going to tell you is, we need bricks and mortar. The retail sector really needs it. “
Bloomberg first reported on Authentic Brands’ plans to go public.