Drake’s October’s Very Own brand has entered a $117.65 million deal with Authentic Brands Group, which has acquired a 51 percent stake in the Toronto-born fashion and lifestyle company.
The deal, which was reported in Rolling Stone on Aug. 27, gives Authentic majority ownership of OVO. Drake will retain a 44 percent stake, while Vince Holding Corp. owns the remaining five percent and has acquired OVO’s operating business.
Under the new arrangement, Vince will oversee the day-to-day operations of OVO, including product development, merchandising, retail and design. Drake and his team will remain involved in OVO’s creative direction. The agreement also addresses OVO debt following a lawsuit filed this summer by lender Applied Real Intelligence over alleged loan-payment defaults.
Authentic and Vince plan to use their existing infrastructure to expand the brand into new markets, particularly in the U.S.
In a statement, Drake said, “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. Authentic and Vince are the perfect partners to help us continue to grow.”
Authentic’s founder and executive chairman, Jamie Salter, added: “OVO has earned a place among the world’s most influential lifestyle brands because it has always stood for something authentic and unmistakable. 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.”
The OVO acquisition adds another celebrity-driven name to Authentic’s growing portfolio. The company has become the second-largest licensor in the U.S., behind The Walt Disney Co., while building its business through partnerships with celebrities including Kevin Hart and David Beckham and brands among the likes of Champion and Sports Illustrated.
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