Authentic finalizes acquisition of Vince
Authentic Brands GroupVince
Under the terms of the agreement, first announced in April, Vince Holding Corp. contributed the Vince intellectual property for a cash consideration of $76.5 million. Authentic now holds a majority stake of 75%, while Vince retains 25% ownership.
“We are thrilled to officially welcome Vince into the Authentic fold,” said Jamie Salter, founder, chairman and CEO of Authentic. “The addition of Vince reinforces our position in the luxury sportswear market. Authentic’s proprietary platform and global network of best-in-class partners together with the visionary expertise of the Vince Holding team positions the brand for continued global expansion and success.”
As part of the acquisition, Authentic is now the licensing partner for the brand’s core categories, and will manage its 60-plus retail stores, current wholesale accounts and e-commerce operations. The agreement spans an initial ten-year term with eight renewal options.
“We are pleased to have successfully closed this transaction with Authentic marking a transformative milestone for Vince,” added Jack Schwefel, chief executive officer of Vince. “With the proceeds from this transaction, we strengthened our financial foundation by repaying in full the outstanding balance of $27.7 million 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.”
In the fiscal year of 2022, Vince Holding saw net sales rise by 10.8 percent to reach $357.4 million. The company achieved a gross profit of $138 million.