Authentic Brands Group has inked a definitive purchase agreement with VF Corporation to acquire its Nautica lifestyle brand, as per a report in the License Global.
However, the financial terms of the agreement were not disclosed yet. The transaction is expected to complete by the end of the second quarter of the financial year.
In 2013, the brand acquired Juicy Couture from Fifth & Pacific, followed by the purchase of the estate of Muhammad Ali including all of Ali’s intellectual property.
ABG will take on Nautica’s brand marketing and licensing functions as part of the transaction. Other parts of the operation will fall under the purview of Aero OpCo, the operating partner for Aéropostale.
Aero OpCo will assume the role of Nautica’s core licensee and operating partner, managing the brand’s wholesale business. ABG said the purchase of Nautica will help it expanding in key markets and opening full-service offices.
“As part of VF’s global business strategy, we’ve stated that our highest priority is to actively manage our brand portfolio to ensure that its composition positions us to accelerate growth,” said Steve Rendle, chairman, president and chief executive officer, VF Corporation.
Founded in 1983, the Nautica brand is an iconic, globally recognized brand, with a focus on sportswear apparel, luggage, accessories and fragrance.
Sold in over 385 retail stores worldwide, the brand will now join the Authentic Brand Group portfolio, which includes brands such as Frye, Herve Leger, Jones New York and the Marilyn Monroe brand.
“We are thrilled to welcome Nautica to the ABG portfolio and are ready to take the helm of this classic American brand,” Jamie Salter, chairman and chief executive officer, ABG was quoted as saying.
