Differential Brands Group (NASDAQ:DFBG) stock was soaring on Thursday as the company that it is making a major investment on Global Brands Group, a publicly-owned company that’s listed in an overseas trading index.
The former said on Wednesday that it will purchase a “significant part” of the latter in a North American licensing deal that is reportedly worth about $1.38 billion. The deal is subject to adjustment and it will be paid in cash.
The Differential Brands Group’s portfolio includes a number of fashion brands such as Hudson and Robert Graham that have been especially fruitful in recent years. The Hong Kong-listed Global Brands has plenty of North American licensed brands, which include Disney, Star Wars, Calvin Klein and Michael Kors.
Differential Brands Group projects an excess of $2.3 billion in pro forma annual revenue. The deal is expected to close sometime in the third quarter of 2018, according to reports from both companies.
DFBG stock was skyrocketing Thursday on the investment news as the company’s shares surged about 57.3% during regular trading hours. The stock declined about 4.5% after the bell Thursday.
Differential Brands Group’s shares have fallen nearly 54% over the past year, while Global Brands shares are down about 63.7% over the same period of time.