Authentic Acquires Majority Stake in Drake's OVO Brand

M&A · Partnership
โดย WWD·USCA·Read original
Summary · why it matters

Authentic Brands Group has acquired a 51 percent stake in the intellectual property of October's Very Own, or OVO, the lifestyle brand cofounded by Drake, with the rapper retaining 44 percent ownership and Vince Holding Corp. holding 5 percent. As part of the deal, Vince Holding will become OVO's core apparel and retail licensee, overseeing design, product development, and merchandising globally, and will acquire the operating business for OVO's retail stores. OVO, founded in 2008 by Drake, Oliver El-Khatib, and Noah "40" Shebib, operates eight stores in Canada, three in the U.S., and one in London, and is known for its black and gold palette and owl logo. The acquisition gives Vince Holding access to the global streetwear market, which is expected to reach nearly $500 billion in sales by 2028, and the company plans to open three U.S. stores next year and begin wholesaling to major retailers in 2027. Vince Holding now projects second-quarter net sales of about $81 million, at the high end of prior guidance, with adjusted operating income and EBITDA margins also expected at the high end of guidance.

Impact on stocks 1

Consumer Discretionary▲ · 1 stocks
Vince Holding Corp. Common Stock
VNCE
▲ PositiveCapitalDemandrelevance

Vince projects Q2 net sales of about $81 million at the high end of prior guidance, with adjusted operating income and EBITDA margins also at the high end.

Off-coverage companies 2

Authentic Brands GroupPrivate▲ Positive
Capitalrelevance

Authentic Brands Group acquires a 51 percent stake in OVO's intellectual property.

October's Very OwnPrivate± Mixed
Capitalrelevance

OVO's IP is being partially sold with Drake retaining 44 percent and Vince holding 5 percent, a mixed ownership change for the brand itself.

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