ABG and SPARC to acquire Eddie Bauer
Authentic Brands Group (ABG) and the SPARC Group announced on Friday the acquisition of Eddie Bauer.
The iconic American outdoor brand was purchased from PSEB Group, an operating company owned by Golden Gate Capital. The closing is subject to certain standard closing conditions and is expected to close by June 1, 2021. The financial terms of the deal were not disclosed.
As part of the acquisition, ABG will own Eddie Bauer’s intellectual property and the brand’s core operating business will become a part of the SPARC portfolio of brands.
The acquisition of Eddie Bauer, which offers performance outerwear, apparel, swimwear, footwear, accessories and outdoor lifestyle gear, also represents ABG’s foray into the outdoor industry and further diversifies its portfolio. ABG said it will tap into the essence of Eddie Bauer and leverage the brand’s technical performance attributes to extend into new outdoor categories and distribution.
“Eddie Bauer has a 100-year history of unparalleled authority in the outdoor space,” said Jamie Salter, founder, chairman and CEO of ABG.
“The global outdoor market opportunity has grown exponentially over the last year and we are ready to hit the ground running and guide this brand into new frontiers in partnership with SPARC, Damien and the rest of the Eddie Bauer team.”
While Eddie Bauer will become part of the SPARC organization following the completion of the transaction, Eddie Bauer will remain headquartered in the Seattle area under the leadership of current President Damien Huang.
The Eddie Bauer team, in partnership with SPARC, will manage the brand’s sourcing, product design and development, wholesale, planning and allocation, and e-commerce as well as its 300 stores, which are principally located in the U.S. and Canada. Eddie Bauer equally has a robust and growing e-commerce business, which drove nearly half of the brand’s annual retail sales last year.
Next, international growth will continue to be an important part of the brand strategy, with territory expansion opportunities in LATAM, Europe and APAC. Near-term launches include China and Korea, while ABG also plans to continue to expand the brand into other product lines suited for all of life’s outdoor adventures.
Moreover, its strategy will focus on introducing enhanced content, growing its following online and launching collaborations inspired by the brand’s energetic DNA.
Following the close of the transaction, SPARC’s operating platform will include Eddie Bauer, Brooks Brothers, Lucky Brand, Nautica, Aéropostale and Forever 21, which collectively generate nearly $8.6 billion in systemwide retail sales annually.
Copyright © 2021 FashionNetwork.com All rights reserved.