Authentic Brands Group plans to renew efforts to go public via an initial public offering in the near term, the company's founder and chief executive said at the Reuters Momentum AI event in New York. The CEO said the firm is progressing faster than expected on a five-year objective to reach $100 billion in annual sales.
"If we pull off the deals that we're currently working on, we'll be over $50 billion (in sales) by the end of this year," the CEO said in an interview. He added that while the board was originally told the milestone would take five years, management now expects to hit it sooner.
The group owns brands including Dockers and Brooks Brothers. Management estimates that if no mergers or acquisitions are completed this year, the company would generate roughly $38 billion in sales.
Executives have identified specific areas of focus for future transactions. The company's M&A strategy is being broadened to include kids entertainment brands and hospitality assets, according to the CEO. He also noted that artificial intelligence is helping the business development team move more quickly to complete deals compared with past years.
The company has previously filed to go public on two occasions. On both prior attempts, the CEO said the firm was bought out for amounts exceeding their planned IPO valuations. He did not provide a precise timeline for when a new filing with the U.S. Securities and Exchange Commission would be submitted.
On potential leadership changes tied to a public listing, the CEO said he intends to continue leading the company but in a capacity other than chief executive once an offering occurs.
Contextual details and company statements
- The company is advancing an M&A-driven growth plan that, if successful, would push reported annual sales above $50 billion by the end of this year.
- Absent additional transactions, management expects about $38 billion in sales for the current year.
- Artificial intelligence is cited as a factor accelerating the pace of deal execution by the business development team.
The CEO's remarks outline a strategy that leans heavily on acquisitions to meet an accelerated revenue target and indicate an intended change in his executive role upon a future public offering. Specific timing for an IPO filing remains unspecified.