Brands on the Move: Lee and Roberto Cavalli

Two more well-known retail names will soon become part of so-called brand accelerators in an effort to spur their growth. The latest participants in this trend are:

* Luxury Roberto Cavalli, which is selling a majority stake to a partnership between Marquee Brands and DAMAC Group.

* Denim label Lee, which is being acquired by Authentic Brands Group.

In both cases, the names being bought hope to expand their operations by teaming with firms that already represent a stable of similar brands. Marquee, which is seeking to combine with Cavalli, has a portfolio that includes Martha Stewart, Laura Ashley, Sur La Table, BCBGMaxazria and Stance, while Lee acquirer Authentic has 50-plus clients, including Reebok, Champion, Guess, Aéropostale, Nautica, Eddie Bauer, Lucky Brand, Nine West, Brooks Brothers, Juicy Couture, Izod, Van Heusen, Dockers, Barneys New York and Quiksilver.

And the reasons the accelerators made these moves are similar, as these quotes from executives at such firms show:

“What makes Lee so compelling is its legacy,” said Jamie Salter, Founder and Executive Chairman of Authentic. “It’s one of the most important names in denim, with more than a century of heritage, consumer awareness and cultural relevance already built in. At Authentic, we focus on preserving what consumers love about their favorite brands while putting the right partners, distribution and marketing strategies behind them to drive long-term growth. Lee is exactly the kind of brand we are built for.”

Then there’s this from Marquee Brands CEO Heath Golden on that firm’s buy: “Roberto Cavalli stands as one of luxury’s defining Italian houses, with a bold creative identity and enduring brand ethos. We see extraordinary potential to build on that foundation through thoughtful brand stewardship and strategic expansion. In partnership with DAMAC, a leader in luxury real estate, we will continue to elevate the Roberto Cavalli experience worldwide.”

Clearly, in today’s turbulent environment, a growing number of brands are seeking strength in numbers by joining forces with brand accelerators.