Authentic Brands Plans IPO Within a Year

Authentic Brands Group, the management firm behind Reebok, Champion, and Brooks Brothers, expects to go public in the next 12 months, according to its founder Jamie Salter.

Salter announced that Matt Maddox, a former Wynn Resorts CEO, will take over as CEO, allowing Salter to transition to executive chairman.

The move is a step towards preparing the company for an initial public offering, with Salter saying the company will go public “sometime in the next 12 months.”

Maddox will lead day-to-day operations, focusing on scaling the business, driving organic growth, and creating value for shareholders and partners, according to a news release.

Salter will remain “deeply engaged in the business” but will focus on long-term strategy, including mergers and acquisitions, which have been key to the company’s growth.

Authentic Brands Group generates about $38 billion in systemwide retail sales and has become a major force in the retail industry, known for buying and licensing intellectual property behind popular brands.

The company has more than 50 brands in its portfolio, including Sports Illustrated, Guess, and Juicy Couture, and has partnered with major figures like Shaquille O’Neal, David Beckham, and Kevin Hart.

Salter is looking to grow the company into a $100 billion company over the next five years, with a focus on high gas prices impacting consumer spending, which could affect the company’s growth.

Entertainment currently accounts for about 20% of the company’s business, but Salter believes it will become a much stronger sector, growing to 50% over time.

The company has been signaling its readiness for a public offering for years, with Salter previously stating that Authentic Brands Group would attempt another IPO “soon.”

Maddox brings experience running a public company, having spent almost 15 years in the C-suite at Wynn, a near $10 billion market cap company traded on the Nasdaq.

His appointment as CEO and Salter‘s transition to executive chairman appear to be the final steps before the company’s expected IPO.

Leadership Transition

The transition is a necessary step towards preparing Authentic Brands Group for the demands of being a public company, with Maddox bringing the necessary experience to lead the company through this process.

Salter will remain involved in the business, but his focus will shift to long-term strategy and mergers and acquisitions, allowing Maddox to handle the day-to-day operations.

Growth and Expansion

They have been expanding their portfolio of brands in recent years, with a focus on entertainment and lifestyle brands, which could be impacted by factors such as beer sales trends.

The company’s growth has been driven by its ability to acquire and license intellectual property behind popular brands, and its partnerships with major figures in the entertainment industry, similar to how refuse trucks companies focus on specific services.

With Maddox at the helm, the company is expected to continue its growth and expansion, both through organic means and through strategic acquisitions, ultimately aiming to become a $100 billion company.