Although Authentic Brands Group chairman and chief executive officer Jamie Salter declined comment, could the company be looking at an initial public offering down the road? An IPO would help ABG investor Leonard Green & Partners see a return on its investment in the brand management firm. How much will depend on the number of shares to be floated.
The company last week acquired the Jones New York brand from private equity firm Sycamore Partners. In ABG’s immediate future, more deals are likely on the agenda. Next up could be the $22.5 million cash offer for bankrupt Frederick’s of Hollywood. While already the named stalking horse, that deal is still subject to better offers.
Salter’s been taking a measured approach when it comes to deal-making, completing one to two acquisitions a year. But who knows how long the IPO window will remain open. And the pressure to have a good story to tell potential investors could have him speeding up the rate of deal-making.
Not that he needs to beef up the reasons why one should invest in shares of ABG. Acquiring the Jones brand catapults ABG’s portfolio of brands to more than $4.5 billion in worldwide retail sales.