Authentic Brands Group to Partner with Vince Holding Corp. to Acquire Luxury Lifestyle Brand Vince Intellectual Property
Authentic Brands Group (Authentic), a global brand development, marketing and entertainment platform, today announced that it has entered into a definitive agreement with Vince Holding Corp. (“VNCE”) to acquire the Vince brand intellectual property. Through the agreement, VNCE will contribute its intellectual property to a newly formed Authentic subsidiary, ABG Vince, of which Authentic will own a majority stake of 75%, while Vince Holding Corp. (VNCE) will retain 25% ownership. In connection with the transaction, Vince Holding Corp. will also enter into a long-term licensing agreement with Authentic to operate VNCE’s existing business in a manner consistent with its current wholesale, retail and ecommerce operations.
“We are pleased to bring this luxury lifestyle brand into the fold and partner with the Vince management team on the brand’s next phase of growth,” said Jamie Salter, Founder, Chairman and CEO of Authentic. “The addition of Vince strategically expands Authentic’s portfolio of globally renowned Luxe brands. We see significant opportunities to expand Vince’s offerings to meet the growing demand for premium and luxury goods around the world.”
Vince was established over two decades ago and is best known for creating elevated yet understated pieces for effortless everyday style across a range of premium collections. The brand offers women’s and men’s ready-to-wear, footwear and accessories through its 60-plus retail stores, wholesale accounts, a newly re-platformed e-commerce site and rental subscription service, Vince Unfold. The current store footprint will stay intact and it is Authentic’s plan to expand the brand in key luxury markets and categories.
“We are pleased to partner with Authentic and unlock the great potential there is for the Vince brand,” said Jack Schwefel, CEO of Vince Holding Corp. “I’m very proud of the work we have done to build Vince over the last 20 years and thrilled to focus on our strategic growth initiatives, including strengthening our operations and expanding our men’s offerings and international presence. We are confident that with Authentic’s proven know-how in brand building combined with our design and distribution expertise, Vince is poised for long-term growth.”
Working closely with the Vince Holding Corp. team, Authentic will take a page from its proven playbook, which connects strong brands with best-in-class partners and a global network of operators, distributors and retailers to optimize value in the marketplace.
Vince Holding Corp. has released a separate announcement, which can be viewed at http://investors.vince.com/.
The transactions are subject to customary closing conditions and are expected to close within 30 days.
Katten Muchin Rosenman LLP is serving as legal advisor to Authentic. Solomon Partners is serving as financial advisor and Ropes & Gray LLP is serving as legal advisor to Vince Holding Corp.