Differential to acquire majority stake in GBG’s North America business

Differential Brands Group Inc. has entered into a definitive purchase agreement with Global Brands Group Holding Limited (GBG), to acquire a significant part of GBG’s North American licensing business, for a purchase price of 1.38 billion dollars. GBG's North America business is comprised of licensed brands such as Disney, Star Wars, Calvin Klein, Under Armour, Tommy Hilfiger, BCBG, Bebe, Joe’s, Buffalo David Bitton, Frye, Michael Kors, Cole Haan and Kenneth Cole.

Commenting on the development, William Sweedler, Chairman of the board of directors of Differential Brands Group and Managing Partner of Tengram Capital Partners LP, which played a pivotal role in bringing the parties together and getting the transaction to signing, said in a statement: “On behalf of the board, I am thrilled that we were able to structure a transaction with the Fung family to acquire one of the leading branded consumer soft goods companies in North America with a world class management team led by Jason Rabin.”

Differential to acquire majority of Global Brands Group’s North America biz

The company said that upon closing, it expects DFBG to have in excess of 2.3 billion dollars in pro forma annual revenue comprised of branded men’s, women’s, and kid’s apparel, along with accessories that will be distributed to a diversified base of consumers across all retail and digital channels. The acquisition is expected to close in the third quarter of 2018.

“We are thrilled to join Differential Brands Group and lead our combined platform by leveraging our expansive infrastructure, distribution and sourcing networks to drive growth, and we look forward to working with the Differential management team and Tengram to help support the company's growth as it capitalizes on promising market opportunities,” added Jason Rabin, current President of GBG North America stated.

Picture:Calvin Klein website