A closed Forever 21 store is pictured in Times Square following the outbreak of Coronavirus disease , in the Manhattan borough of New York City, New York, U.S., March 23, 2020. REUTERS/Carlo Allegrisaid on Monday private equity firms CVC Capital Partners and HPS Investment Partners had agreed to buy a significant stake in a deal that values the brand developer at $12.7 billion on an enterprise value basis.
The Forever 21 owner also postponed its U.S. initial public offering announced in July to a date in 2023 or 2024, CNBC hadABG did not immediately respond to a Reuters query on its IPO.Over 11 years, ABG has amassed more than 30 labels sold in some 6,000 stores. Its brands include apparel chains Aéropostale and Van Heusen, as well as Sports Illustrated magazine.
It agreed in August to buy sportswear brand Reebok from Germany's Adidas for up to 2.1 billion euros .After the closure of the deal, which is expected in December, CVC and HPS will join ABG's board of directors, according to a company statement. BlackRock Long Term Private Capital will remain ABG's largest shareholder and other shareholders like Shaquille O'Neal will continue to hold equity positions.Reporting by Nishit Jogi in Bengaluru; Editing by Sherry Jacob-Phillips and Subhranshu SahuSubscribe for our daily curated newsletter to receive the latest exclusive Reuters coverage delivered to your inbox.