Authentic acquires majority stake in rapper’s OVO streetwear brand
Authentic Brands Group has added another big name to its portfolio with an eye towards scaling it globally.
The global brand and entertainment platform has acquired a 51% stake in the intellectual property of October’s Very Own, better known as OVO, the streetwear brand co-founded by Canadian singer and rapper Drake. The performer will maintain a 44% ownership stake and remain the driving force behind OVO, according to Authentic.
As part of the transaction, Vince Holding Corp., a partner in Authentic's global network, has acquired OVO's operating business and will oversee the brand's design, product development, merchandising and retail stores. Vince Holding will own 5% of the OVO intellectual property and has entered into a long-term license agreement for use of the OVO IP.
OVO currently operates 12 stores across Canada, the United States, and the United Kingdom, in addition to its e-commerce platform. Known for its distinctive owl logo and black-and-gold aesthetic, the brand has built a strong following on collaboration-led product drops and by maintaining a close connection to its customer base.
Vince Holding and OVO will maintain separate brand operations and creative teams. OVO will continue to operate from its Toronto headquarters.
The transaction is expected to fuel OVO’s growth, including store expansion and launching the brand’s wholesale business. It will also give Vince Holdings the Canadian-based infrastructure to open Vince stores.
“We are thrilled to welcome OVO into our portfolio and to partner with Drake and Authentic in building on the brand's strong foundation to support its next phase of growth," said Brendan Hoffman, CEO of Vince Holding. “We are committed to preserving the authenticity and meaningful customer relationships that have driven OVO's success to date."
Hoffman added that the the transaction also deepens its relationship with Authentic Brands, “a partner supporting our multi-brand platform strategy to broaden our portfolio of brands, business models and distribution channels.”
OVO was founded in 2008 by Drake (Aubrey Drake Graham) with entrepreneur Oliver El-Khatib and producer Noah “40” Shebib.
“We’re just a couple kids from Toronto who started something we believed in. Here we are 20 years later, same kids with bigger dreams,” Drake stated. “Authentic and Vince are the perfect partners to help us continue to grow.”
Authentic's diversified portfolio spans more than 50 brands, and includes Reebok, Champion, Shaquille O'Neal, David Beckham, Aéropostale, Nautica, Eddie Bauer, Lucky Brand, Nine West, Brooks Brothers, Juicy Couture, Vince Camuto and Barneys New York among many others. In May, the company entered into an agreement to acquire Lee from Kontoor Brands Inc. in a deal valued at up to $1 billion.
“OVO has earned a place among the world's most influential lifestyle brands because it has always stood for something authentic and unmistakable," said Jamie Salter, founder and executive chairman of Authentic. "Drake and his team have built something with incredible cultural influence. We see a significant opportunity to take that even further, opening new markets, building new businesses and reaching more people around the world without losing what makes OVO, OVO."
