Centric Brands CEO Jason Rabin buys back $3B apparel group in management-led deal
What's the deal? Centric BrandsDealroom has a profile for this one. Try Dealroom → chief executive officer Jason Rabin has led a management buyout of the New York lifestyle brand group, backed by new investors Axar Capital Management, M-Cor Capital, MSP Sports CapitalDealroom has a profile for this one. Try Dealroom →, and group president Jarrod Kahn. Previous owners Blackstone, Ares ManagementDealroom has a profile for this one. Try Dealroom →, and HPS Investment PartnersDealroom has a profile for this one. Try Dealroom → are exiting. Terms were not disclosed.
What each side brings: Centric designs, sources, and distributes apparel, accessories, and beauty across more than 100 owned and licensed brands, including Calvin KleinDealroom has a profile for this one. Try Dealroom →, CoachDealroom has a profile for this one. Try Dealroom →, Michael Kors, Tommy HilfigerDealroom has a profile for this one. Try Dealroom →, and UggDealroom has a profile for this one. Try Dealroom →, plus entertainment licences from Disney and MarvelDealroom has a profile for this one. Try Dealroom →. Revenue tops $3 billion. MSP adds sports expertise, with CEO Jeff Moorad citing Centric's "scale, strategy and operating discipline."
Why now? Rabin's former backers held the company since 2018 and supported it through growth, but he wanted to reclaim ownership. "Private equity is an investment, and after a point in time, it's time," he said in an exclusive interview on November 2. The deal closed that week.
What changes? Little, at least on paper. Management stays in place, with Rabin as CEO and Kahn continuing alongside him. "It's really about us being focused on our strategic plan that we created a few years back," Rabin said.
What's the endgame? Rabin wants to keep expanding the portfolio and global operations across North America, Europe, and Asia. "This is about continuing to build a blue-chip company in this space," he said. The move follows recent acquisitions of children's label VinginoDealroom has a profile for this one. Try Dealroom → and Fownes Brothers' cold-weather accessories business.
The backdrop: Centric filed for Chapter 11 bankruptcy in May 2020, cutting roughly $700 million in debt before emerging that October under its now-departing creditor owners. The buyout hands control back to the operators who ran the company throughout.
The signal: The deal reflects an apparel market centred on branded assets, licensing, and selective M&A, as private equity cycles out and operators consolidate control. For Centric, the significance is continuity: a management handoff that preserves strategy while swapping who owns the upside.
Read more: wwd.com
Image credit: Generated with Gemini
