- Retail and entertainment conglomerate Authentic Brands Group announced it has entered into a partnership to co-own and oversee David Beckham’s global brand.
- Authentic Brands declined to disclose the terms of the deal. But a person familiar with the transaction said Authentic Brands paid about $269 million for a 55% stake DB Ventures.
- In connection with the partnership, Beckham has become a shareholder in Authentic Brands, which owns retailers including Forever 21 and Barneys New York.
Retail and entertainment conglomerate Authentic Brands Group announced Thursday it has entered into a partnership to co-own and oversee David Beckham’s global brand.
Authentic Brands declined to disclose financial terms of the deal. A person familiar with the transaction said the company paid about $269 million for a 55% stake in the soccer star’s DB Ventures.
As part of the deal, Beckham will become a shareholder in Authentic Brands, which owns retailers such as Forever 21 and Barneys New York, and the rights to iconic stars including Elvis Presley and Shaquille O’Neal, who is also a major investor.
The transaction will allow Authentic Brands to open its European headquarters in Beckham’s existing London offices, the company said.
Authentic Brands also said it is now the largest shareholder in Studio 99, a production company Beckham co-founded in 2019.
“David and his team have built an enterprise that spans sports, entertainment, lifestyle and luxury, and we see significant opportunities to scale his brand and expand it into new verticals,” said Jamie Salter, founder, chairman and CEO of Authentic Brands.
DB Ventures currently manages Beckham’s endorsement deals with companies including Tudor watches and whisky label Haig.
Authentic Brands shelved its plans to go public after it agreed in November to sell a 25% stake to private equity firm CVC Capital Partners and hedge fund HPS Investment Partners. The deal gave the company an enterprise value of $12.7 billion.
Authentic Brands also is in the process of acquiring sneaker label Reebok from Adidas for about $2.5 billion. That deal is expected to close in the first quarter of this year.
Source: Business - cnbc.com
