Retail conglomerate Authentic Brands Group plans to shelve a planned initial public offering and instead sell significant equity stakes in its business to private equity firm CVC Capital, hedge fund HPS Investment Partners and a pool of existing stakeholders, CNBC has learned.
The deal is valued at roughly $12.7 billion, and is expected to be announced Monday, the company said.
Authentic Brands’ portfolio companies include apparel retailers Forever 21 and Aeropostale, department store chain Barneys New York, men’s suit maker Brooks Brothers and Sports Illustrated magazine.
Early next year, its deal to buy sneaker maker Reebok is expected to close, adding another brand to its holdings.
The company had filed for an IPO in early July. But Authentic Brands Chief Executive Jamie Salter said it will target an IPO date in 2023 or 2024. He said he has signed on to be CEO for another five years.
“The IPO climate is ridiculous,” said Salter in a phone interview. “I think we would have gotten a massive valuation .
