The ‘definitive agreement’, which includes all the intellectual property of the Juicy Couture brand was signed on October 7, meaning that intellectual property firm Authentic Brands Group, a unit of private equity group Leonard Green & Partners will take control of the fledging fashion brand when completed towards the end of the year.
In order to allow the business to transition efficiently, Authentic Brands Group has also entering into a short-term licensing deal with Fifth & Pacific, which will see the former owners continuing to operate Juicy Couture retail outlets until June 2014. In the second half of the year Fifth & Pacific will sell-off the inventory as part of the final transition to Authentic Brands Group’s licensees, which are expected to be announced in the coming weeks.
Commenting on the acquisition, Jamie Salter, chairman and chief executive officer of Authentic Brands Group said: "Juicy Couture is a leading lifestyle brand that is recognized worldwide. We are honoured and excited to build upon Juicy Couture's unique heritage and to realize the brand's significant global potential."
Juicy Couture sold to Authentic Brands Group
With the sale announced, Fifth & Pacific will now focus on its accessories and apparel brand Kate Spade, which has reported significant sales growth over the past few years and has diversified its offering with the launch of new global lifestyle brand, Kate Spade Saturday.
William L. McComb, CEO of Fifth & Pacific Companies, Inc., commented: "This decision is the result of a process we began last year - studying our resource allocation needs, our capital structure, and the operating risks and opportunities associated with a three brand portfolio while still maximizing shareholder value. Ultimately, this is all about bringing Kate Spade to its full potential."
Authentic Brands Group’s mandate is to acquire, manage and build long-term value in prominent consumer brands and recently the intellectual property firm also snapped up Spyder Active Sports and Spyder. The brand management group’s portfolio also includes Judith Leiber and Marilyn Monroe.