Authentic Brands Group beats Bluestar Alliance to buy Boardriders

Authentic Brands Group buys Boardriders after a very tough competition with the other brand manager and direct rival, Bluestar Alliance.

Thus, ABG finally prevailed and took over the apparel and footwear firm for which it had fought so hard and which will be completed by the end of 2023.

The U.S. brand management company expands its portfolio thanks to the incorporation of Boardriders, an Australian brand that has been at the center of the financial scene in recent months precisely because of the dispute between the two giants.

The acquisition will materialize once the contract is signed and authorized by the relevant regulatory bodies.

Authentic Brands Group acquires Boardriders

Boardriders is an Australian company based in the United States that specializes in surf, skate and snowboard gear and apparel.

The holding company owns Element, Roxy, Quiksilver, Billabong, DC Shoes, VonZipper and Rvca.

The company is currently present in more than 55 countries and operates through 15 flagship stores, 572 company-owned stores and 34 online retail sites. The company is also present in more than 7,000 multi-brand stores.

Authentic Brands Group expects to include the group in its portfolio from the third quarter of the year.

With this purchase, Authentic Brands consolidates its expansion plan, especially in the alternative sports world. Indeed, according to the U.S. company, the acquisition of this group is an opportunity to extend its presence worldwide.

Boardriders, for its part, welcomed the deal and stated that it is a good opportunity to accelerate the growth of the brands it owns.

Bluestar Alliance, a competitor of ABB’s ABB competitor Bluestar Alliance, is a global competitor of ABB’s ABB competitor Bluestar

Bluestar Alliance, ABG’s competitor

ABG had been in the process of acquiring the Australian company for 60 days and had begun to compete with several buyers.

The rival with the best chances so far was the holding company Bluestar Alliance, owner of the sportswear company Hurley.

The New York-based holding company, which has in its portfolio more than 39 brands such as Volcom or Spyder, already has the necessary experience to rescue companies in crisis, using a business model based on the outsourcing of all costs.

Also, ABG manages asset-less companies and its sector of expertise is brands and licensing.

Background of Authentic Brands Group

This 2023 Authentic Brands Group had signed the extension of credit lines for US$242 million, a loan of US$1,523 million and the last one of US$700 million, maturing in five years.

ABG indicated earlier this year that this figure was going to be key to the financing of the potential purchase of the Australian company.

The U.S. holding company has been betting mainly on the textile sector, with the purchase of several companies such as the British chain, Hunter, Ted Baker or Eddie Bauer.

At present, Authentic Brands Group is present in more than 149 countries with 10,820 stores and more than 300,000 stores of its own.

Rivals in the brand management industry

The brand management industry as a whole is increasingly being contested between Authentic Brands Group and Bluestar Alliance, the two most important players in this segment.

The disagreement between ABG and Bluestar Alliance centers on the ownership and licensing rights to several well-known consumer brands.

ABG, a New York-based brand management company, has earned a reputation for acquiring distressed brands and revitalizing them through licensing and marketing strategies.

Bluestar Alliance, also based in New York, follows a similar business model, acquiring iconic brands and leveraging their intellectual property to generate revenue.

The dispute between the two companies arose when ABG accused Bluestar Alliance of breaching a licensing agreement for the Marilyn Monroe brand.

ABG alleged that Bluestar Alliance failed to make required royalty payments and violated the terms of the agreement by engaging in unauthorized sublicensing.

Bluestar Alliance responded with arguments of its own, accusing ABG of interfering with its business operations and misrepresenting the value of the Marilyn Monroe trademark.

The “war” no one sees

As the conflict escalated, both ABG and Bluestar Alliance initiated legal action against each other, filing lawsuits and counterclaims.

The dispute has raised concerns about the potential impact on the retail landscape. Many of the brands in question are well known and have a large following.

Uncertainty around their ownership and licensing rights could disrupt the availability of associated products and services.

For investors, it is an industry to watch, but with these caveats, if you invest in ABG and the battle is won by Bluestar Alliance, it will not be good news. And the same will happen if the decision is to bet on Bluestar Alliance and the result is the opposite.

The resolution of this conflict will likely set a precedent for how brand management companies deal with ownership and licensing issues in the future.