Kering group has announced the completion of the sale of its US sports and lifestyle brand Volcom. The company said that the intellectual property of Volcom is purchased by Authentic Brands Group (ABG), effective April 1, 2019.
The move is seen as ABG’s focus towards expanding its fashion portfolio, adding to its collection of clothing properties. The recent acquisition will also set the company up to make moves in the skate, surf and snowboarding markets.
Already the owners of Juicy Couture, Nautica, Aeropostale and several celebrity namesakes (including Elvis Presley, Marilyn Monroe and Shaquille O’Neal), ABG’s purchase affords the company access to Volcom’s massive retail presence, with nearly 100 stores across the globe.
“For nearly three decades, the Volcom family has created one of the most iconic brands in the skate, surf and snow markets,” affirmed ABG chairman and CEO Jamie Salter in a statement. One of ABG’s goal with the acquisition is to promote Volcom’s digital campaigns and influencer partnerships, with a focus on expanding its millennial and Generation Z customer base.
Todd Hymel, CEO, Volcom, and his management team will maintain a majority stake in Liberated Brands, the new operating company of Volcom, continuing to oversea operations in America, Japan, France and Australia alongside retail/wholesale business, product development and athlete marketing.
With the acquisition of Volcom, ABG values its own portfolio’s value at over US$9.3 billion.
The decision comes months after Kering announced its aim to spin off German sportswear brand Puma to its shareholders. Kering first acquired Volcom, a Californian skate and surf lifestyle brand in 2011 for 608 million US dollars. The brand has kept somewhat of a low profile in comparison to Kering’s luxury fashion houses and in 2016, Volcom off-loaded its eyewear brand Electric.
