VNCE - Vince Holding enters strategic partnership with Authentic Brands Group

2023-04-24 08:48:05 ET

Vince Holding Corp. ( NYSE: VNCE ) announced that it entered a strategic deal with Authentic Brands Group to contribute intellectual property to a newly formed Authentic subsidiary called ABG Vince. The apparel company will be paid a for total consideration of $76.5M in cash from Authentic and hold a 25% membership interest in ABG Vince.

Vince Holding ( VNCE ) said it plans to use proceeds from the new partnership to strengthen its overall liquidity position, increase its working capital, and repay in full the outstanding balance of $27.7M under its term loan credit facility, and to repay a portion of outstanding borrowings under its revolving credit facility.

The license Agreement contains an initial ten-year term and eight ten-year renewal options allowing Vince to renew the agreement.The transaction is expected to close during the second quarter and is subject to customary closing conditions.

CEO statement: "We are pleased to enter into this transformative partnership with Authentic which will provide us the necessary capital to strengthen our balance sheet allowing for opportunities to enhance our focus on driving margin expansion, and focusing on our strategic growth initiatives including leveraging our enhanced e-commerce capabilities and CDP platform, expanding our international presence, growing our Men’s business and selectively opening new retail doors in the U.S."

The company also expects to benefit from leveraging Authentic’s expertise and Lifestyle and Entertainment platforms, which are seen providing opportunities to grow the Vince brand into adjacent categories and territories.

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