abg investment group, formally known as Authentic Brands Group (ABG), is an American brand development and marketing company focusing on acquiring renowned brands in entertainment, fashion and sports. ABG has grown rapidly in recent years by attracting investments from private equity firms to fund its acquisition strategies. This article analyzes ABG’s investment and business expansion strategies.
ABG postpones IPO after selling stakes to CVC and HPS Investment Partners
In November 2021, ABG sold significant stakes to private equity firms CVC Capital Partners and HPS Investment Partners, valuing the company at $12.7 billion. As a result, ABG postponed its planned IPO to 2023 or 2024. The investments from CVC and HPS provided funding for ABG to continue pursuing acquisitions while allowing existing shareholders, including founder Jamie Salter, to retain stakes.
ABG acquires majority stake in David Beckham’s brand company
In February 2022, ABG acquired 55% stake of David Beckham’s brand and business holdings company DB Ventures for nearly $300 million. According to ABG CEO Jamie Salter, the company can generate strong profits by expanding licensing of David Beckham’s brands globally. This demonstrates ABG’s strategy of acquiring rights to exploit high-potential celebrity personal brands.
ABG purchases Reebok from Adidas for $2.5 billion
In August 2021, ABG signed an agreement with Adidas to acquire Reebok brand for $2.5 billion. The deal was completed in Q1 2022, adding the major sporting goods brand to ABG’s portfolio. Together with recent investments, the Reebok acquisition signals ABG’s ambition to grow its presence in the sporting goods and athleisure market.
Through attracting investments from PE firms and strategic acquisitions of strong brands like Reebok, ABG has rapidly grown in scale and valuation. Its business model is based on acquiring renowned brands then extracting licensing revenues globally.