Volcom’s Intellectual Property Sold to Licensing Company
Action sportswear powerhouse Volcom has moved into a new home.
Authentic Brands Group, the New York brand development and licensing company, announced on April 2 that it had acquired Volcom’s intellectual property for an undisclosed amount.
Volcom’s former parent company, Kering S.A., had been shopping the Southern California action sportswear company around for about one year. Paris-headquartered Kering said that it wanted to focus more on its luxury brands including Gucci, Saint Laurent, Bottega Veneta and Alexander McQueen. Kering paid $608 million for Volcom in 2011 when it acquired the brand based in Costa Mesa, Calif.
Authentic Brands owns 50 brands and fashion labels including Juicy Couture, Vince Camuto, Jones New York, Aéropostale, Hervé Leger and Frederick’s of Hollywood, valued at more than $9.3 billion in annual retail sales, according to an ABG statement. Jamie Salter is the chairman and chief executive officer of ABG.
ABG will work with Todd Hymel, Volcom’s chief executive officer, to create a new company called Liberated Brands, which will handle Volcom’s business and operations. ABG will take a minority stake in the new company, and Hymel and Volcom’s current management team will take a majority stake.
With this new deal, ABG will focus on building business development and brand awareness for Volcom. It will also work with Liberated Brands’ retail and wholesale operations as a platform for the expansion of complementary ABG-owned brands.
Hymel said this deal will put Volcom in good hands. “Jamie’s commitment and conviction throughout the sale process was proof of his passion for the brand,” Hymel said in a statement. “ABG has built an impressive portfolio by being a powerhouse in brand development and marketing. Jamie and his team share our vision and excitement for Volcom’s long-term growth and we are excited to be a part of this next chapter for the brand.”
For the brand’s next steps, Volcom will continue to develop its core men’s and snow business as well as build its women’s and kid’s categories in North America and key international markets. ABG also will develop digital marketing campaigns, which will include influencer campaigns aimed at Gen Z and millennial audiences.