15 Jun Global Brands, CAA Form Brand Licensing Joint Venture
Global Brands Group Holding Limited will spin off its brand management business into a new UK subsidiary that will also acquire the licensing business of Los Angeles-based CAA.
The joint venture – CAA-GBG – will be one of the world’s largest global brand management companies. CAA-GBG will be 72.7 percent owned by Global Brands Group and 27.3 percent owned by CAA. Under their agreement, CAA has the right to require the Global Brands Group acquire control of its stake in the joint venture within seven years.
The GBG Brand Management Business is a full-service brand extension platform, covering all types of consumer products and services. The business earns commissions on licensing agreements related to its character, corporate, fashion and lifestyle brand clients. It generated net profits before taxes of approximately $19.0 million in 2015, down from $20.7 million in 2014.
CAA is a leading full-service entertainment and sports talent agency, representing many well-known film, television, music, and sports celebrities, brands and companies. It generated net profits before taxes of approximately $7.3 million in the fiscal year ended Sept. 30 2015, up from $500,000 the year before.
CAA was founded in 1975 and is based in Los Angeles, California, with 13 global offices and over 2,000 employees worldwide. CAA represents many of the most successful professionals working in film, television, music, theatre, video games, sports, and digital content, and provides a range of strategic marketing and consulting services to corporate clients.
The licensing management business of CAA and the CAA Licensing Business develops and manages brand management programs for its clients across a multitude of product categories. The CAA Licensing Business has a strong creative department, capable of creating style guides, retail concepts and branding solutions for clients and has a particularly strong presence in North America, with offices in Los Angeles and New York.