Authentic Brands shelves IPO, to sell $12.7 billion stake to investors

Retail conglomerate Authentic Brands Group plans to shelve a planned initial public offering and instead sell significant equity stakes in its business to private equity firm CVC Capital, hedge fund HPS Investment Partners and a pool of existing stakeholders, CNBC has learned.

The deal is valued at roughly $12.7 billion, and is expected to be announced Monday, the company said.

Authentic Brands’ portfolio companies include apparel retailers Forever 21 and Aeropostale, department store chain Barneys New York, men’s suit maker Brooks Brothers and Sports Illustrated magazine. Early…