Drake's OVO Brand Enters New Era with Majority Stake Acquisition

Drake is set to expand the reach of his lifestyle brand, October's Very Own (OVO), following a significant acquisition by Authentic Brands Group. The global brand powerhouse announced on Thursday that it has acquired a 51 percent stake in OVO's intellectual property, leaving Drake with 44 percent ownership while Vince Holding Corp. retains 5 percent.

Founded in 2008 by Drake, entrepreneur Oliver El-Khatib, and producer Noah “40” Shebib, OVO is renowned for its stylish unisex sportswear, which includes T-shirts, hoodies, and quarter-zips. The brand operates multiple stores across Canada, the U.S., and London, and has also ventured into golf apparel and collaborations with notable entities like the UFC. The brand's signature black and gold palette and owl logo resonate with Drake's lifestyle and artistic vision.

“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,” Drake expressed, highlighting the journey of OVO. Vince Holding, as part of this new arrangement, will oversee OVO’s apparel and retail licensing, managing design and merchandising on a global scale while acquiring the operating business for OVO retail stores.

Brendan Hoffman, CEO of Vince Holding, emphasized that OVO will continue to operate as a separate division, maintaining its creative teams in Toronto while Vince takes charge of production. The goal is to enhance OVO's market presence and financial stability, with plans to open three new stores in the U.S. next year and expand into the wholesale market by 2027.

“Few brands combine influence, elevated style, and approachability the way OVO does,” said Hoffman, who also noted that this acquisition positions Vince Holding to tap into the burgeoning streetwear sector, projected to reach nearly $500 billion in sales by 2028. This move not only diversifies Vince’s portfolio but also opens doors to the Canadian market.

Jamie Salter, founder and executive chairman of Authentic, expressed enthusiasm over partnering with Drake, stating, “Drake has built a true lifestyle brand with influence across fashion, music, art, and culture.” He believes that OVO represents an opportunity for Authentic to enhance its global commerce while maintaining its cultural relevance.

As part of this partnership, Authentic aims to leverage Drake's cultural influence to drive commerce. Hoffman mentioned having dinner with Drake recently, noting his enthusiasm for the venture. This collaboration is anticipated to significantly impact Vince Holding’s financial performance, with projections for net sales reaching approximately $81 million for the second quarter.

Source: wwd.com