After weeks of speculations, an agreement has now been inked between VF Corporation, a global leader in branded lifestyle apparel, footwear and accessories, and Authentic Brands Group (ABG) LLC for the sale of the iconic Nautica brand.
The deal, subject to customary closing conditions and regulatory approvals, is likely to take place in the first half of the current year. However, the parties involved in the deal have not yet disclosed the terms of the agreement.
Jamie Salter, Chairman and Chief Executive Officer of Authentic Brands Group said that the company is pleased to welcome Nautica to its portfolio and looks to capitalise on its business. Currently, the apparel company operates brands such as Frye, Herve Leger, Jones New York and Marilyn Monroe.
Meanwhile, VF Corporation has stated that its utmost priority is to manage the brand’s portfolio to make sure that its composition places the company to bolster growth.
Markedly, the Nautica brand made its debut in the year 1983 as an American heritage brand. It focussed on sportswear, luggage, accessories and fragrance segments. The label is now sold in 385+ stores across the globe.
After the deal, the Authentic Brands Group will manage the marketing and licensing functions of Nautica while Aero OpCo, which is also the operating partner for Aéropostale, will take care of the brand’s wholesale business, over 70 retail stores in the United States, online operations, product development, business partner and other retail aspects.
It is being reported that this is Authentic Brands Group’s biggest brand purchase till date. The acquisition will expand the company’s portfolio to approximately US $ 7 billion in the international retail sales.