Joint Venture of Established Incorporated and ACI Licensing Acquires Four Famous Lifestyle Brands
Established Incorporated and ACI Licensing have come together to form a strategic joint venture aimed at purchasing and managing four popular lifestyle brands. These include Badgley Mischka, Rachel Rachel Roy, C&C California, and Kay Unger Design.
Andy Cohan, co-founder and co-chief executive officer of ACI Licensing, chose not to disclose the financial terms of the deal nor the projected volume for the newly established entity.
With this new arrangement, Established, which operates out of Houston, will retain 51 percent ownership of the venture, while ACI Licensing will hold the remaining 49 percent. Thus, the deal allows Established to diversify its portfolio beyond the electronics sector and delve into fashion. The four US brands included in the deal provide a variety of products from apparel and accessories to footwear and home furnishings.
This agreement granted the joint venture full control of the intellectual property attached to Badgley Mischka, C&C California, and Kay Unger, along with a 71 percent stake in Rachel Rachel Roy. These brands are now unified under the auspices of the joint venture, further consolidating the influence of the partnership.
Headquartered in Los Angeles, with offices in New York, ACI will continue to supervise the day-to-day operations of the portfolio and sustain its existing relationships with manufacturers and retailers.
Badgley Mischka’s co-founders and designers Mark Badgley and James Mischka have supposedly exited the company they began in New York City almost four decades ago. However, they are still connected with HSN through their association with the Badgley Mischka dress licensee MJCLK.
Established in 1988, Badgley and Mischka built their eponymous company by dressing A-list celebrities for red carpet events. Over time, they expanded and diversified their business scope by incorporating licenses for a range of products. This new acquisition ends the flourishing streak of the Badgley Mischka brand, which held more than 40 licenses before this decisive deal.
In another transition, Rachel Roy, a member of the Council of Fashion Designers of America and a former creative director of her brand, has managed to maintain her presence and involvement in her namesake company.
In terms of restructuring, C&C California, which was initiated in 2002 and has been known for its 1970s-inspired relaxed West Coast fashion, underwent a classic transformation post its acquisition by Liz Claiborne in 2005. The brand saw a boost in renown when its signature soft T-shirts were featured by Oprah Winfrey as one of her “Favorite Things”.
Across these shifting sands, Established’s CEO Hall O’Donnell has expressed confidence and optimism about the future of their venture. He said, “By leveraging our expertise in brand revitalization alongside ACI Licensing’s deep industry knowledge in lifestyle manufacturing and licensing, we are positioned to maximize the growth potential of these well-known brands.”