New York-based investment company Authentic Brands Group announced Thursday that it has acquired a 51% stake in October's Very Own’s intellectual property, effectively handing the company majority control of the Toronto-founded fashion and lifestyle brand. Superstar Canadian rapper Drake retains 44 percent, while Vince Holding Corp. owns the remaining 5 percent and has acquired OVO’s operating business.
Vince will handle the nuts and bolts of the business, including product development, merchandising, retail and design. The company also becomes OVO’s core apparel licensee, while Drake and his team will remain involved in the brand’s creative direction.
Founded by Drake, Oliver El-Khatib and Noah “40” Shebib in 2008, OVO grew from a Toronto imprint into a global clothing operation, with 12 flagship stores and an online business serving customers internationally. Authentic says the partnership is intended to expand the brand into new markets, while Vince plans to use its retail and wholesale infrastructure to push OVO further into the U.S.
The transaction also comes with a sizeable paycheck. Transaction documents put the asset purchase price for OVO’s intellectual property at $117.65 million USD ($164 million CAD). The agreement also addresses OVO debt following a lawsuit filed this summer by lender Applied Real Intelligence over alleged loan-payment defaults.
