Put another one in the books for Authentic Brands Group.
On Wednesday, the brand management company, through its Sparc Group, a partnership with mall developer Simon Property Group, obtained court approval for its purchase of Lucky Brand Dungarees.
The purchase price was $140.1 million.
Last month, Sparc entered a stalking horse asset purchase agreement to buy the Los Angeles-based denim brand at the same time the company filed Chapter 11 bankruptcy.
Under the terms of the deal, Sparc will act as the core licensee and operating partner for Lucky Brand and will oversee all sourcing, product design and development and wholesale operations for the company’s North American retail stores and its e-commerce division. ABG will own the intellectual property assets and oversee all licensing partnerships, new businesses and brand development. Responsibility for marketing, which the company said will be “heavily focused on digital activations, social media and emerging platforms,” will be shared by Sparc and ABG.
Sparc is also the dedicated operating company for the Nautica and Aéropostale brands.
“We are pleased to welcome this iconic, heritage denim brand to ABG,” said Jamie Salter, founder, chairman and chief executive officer of ABG. “This acquisition will boost the value of our portfolio to more than $13 billion in global retail sales annually. Lucky Brand’s DNA resonates strongly with today’s youth and we see tremendous opportunity to unlock its value in key territories around the world. With ABG’s social media expertise and content development capabilities we are ready to hit the ground running and expand quickly into new categories and markets.”
“Building on the foundation we’ve created with Aéropostale and Nautica, we are excited to partner with ABG to expand and enhance Sparc through Lucky Brand,” said Marc Miller, ceo of Sparc. “This acquisition will diversify our growing brand platform, which includes approximately 750 Sparc-owned and operated locations in the U.S., plus e-commerce and wholesale that collectively drive over $2 billion in retail sales annually.”
Lucky currently operates around 175 retail stores in North America and the brand is also carried in department and specialty stores as well as on its own e-commerce site. The new owners said they will work with landlords to “maintain key stores across North America.” They did not specify how many units that would include. They will also focus on increasing distribution in North America, Latin America, Europe and Asia.
On Tuesday, ABG was the successful bidder for Brooks Brothers when it increased its offer to $325 million. That deal is expected to close on Friday.