Fifth & Pacific Companies has sold the Juicy Couture brand to Authentic Brands Group for $195 million in cash, in a move to focus on its remaining two brands–Lucky Jeans and Kate Spade.

"This decision is the result of a process we began last year–studying our resource allocation needs, our capital structure and the operating risks and opportunities associated with a three-brand portfolio while still maximizing shareholder value,” says William L. McComb, chief executive officer, Fifth & Pacific. “While working hard to accelerate the turnaround of Juicy Couture and continue the expansion of Lucky Brand Jeans, we also initiated processes to assess the market values of each of these assets. Despite our conviction and faith in the portfolio as a whole, we concluded that the best way to increase shareholder return would be by monetizing the value of Juicy Couture's powerful trademarks today to further de-risk our company and its ability to execute over time. Ultimately, this is all about bringing Kate Spade to its full potential."

The deal is expected to close in November. To ensure a smooth transition of the business, Fifth & Pacific has also entered into a short-term licensing agreement with ABG that will extend through the first half of 2014 with a $10 million guaranteed minimum royalty for ABG.

“In the coming weeks and months, we anticipate that Authentic Brands Group will announce licensees and affiliates that will work to take over elements of the operating business, including many of the company's talented associates, retail stores, wholesale, international and certain components of the e-commerce site,” added McComb. “We plan to work closely with these entities to ensure a smooth and orderly transition that is seamless to consumers and our business partners."

"Juicy Couture is a leading lifestyle brand that is recognized worldwide,” says Jamie Salter, chairman and chief executive officer, ABG. “We are honored and excited to build upon Juicy Couture's unique heritage and to realize the brand's significant global potential."