Nautica is set to be in new hands. VF Corp revealed on Monday it has passed over the fashion label to brand management Authentic Brands Group, in a deal reached over the weekend.
While details are yet to emerge, the sale is forecast to close by the end of the second quarter, according to the North Carolina-based VF Corp, in a press release.
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The deal follows VF’s recent acquisition of performance footwear brand Altra, the first active brand to join the US group. The company continues to reorganise its portfolio to maximize its growth potential.
“As part of VF’s global business strategy, we’ve stated that our highest priority is to actively manage our brand portfolio to ensure that its composition positions us to accelerate growth,” stated VF Chairman, President and CEO Steve. “This announcement marks yet another example of how we’re delivering on our commitment. We are pleased to have reached this agreement with Authentic Brands Group.”
Based in New York, Authentic Brands Group manages more than 30 global consumer brands including Juicy Couture, Herve Leger and Airwalk, and operates through over 2,300 locations worldwide.
“We are thrilled to welcome Nautica to the ABG portfolio and are ready to take the helm of this classic American brand,” said Jamie Salter, chairman and CEO of ABG.
Bank of America Merrill Lynch acted as VF’s exclusive financial advisor on the transaction, while Davis Polk & Wardwell LLP will continue to support the group as its legal advisor.
Founded in 1983, American brand Nautica is a mid to high-end apparel label for men and women. It is currently available in more than 65 countries.
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VF Corporation currently a bevy of fashion and lifestyle brands such as Vans, The North Face and Timberland, as well as Wrangler and Lee.
The transaction is expected to close in the first half of 2018 but is subject to standard closing conditions and regulatory approvals.