Hong Kong-headquartered Global Brands Group has sold a 51 per cent controlling stake in its Frye leatherwear brand business.

The purchaser is New York-headquartered Authentic Brands Group and the two companies say that after settlement, Global Brands will be granted a 10-year worldwide exclusive master license for men’s, women’s and kid’s products in apparel, footwear, accessories and home categories under the Frye brand. The license is also expected to contain renewal options.

With a history dating back more than 150 years, Frye has a long-established heritage and reputation in the US for quality leather products. The brand is focused on women’s and men’s leather shoes and boots and has expanded into other product categories, such as handbags and other fashion accessories.

Authentic Brands Group has paid US$100 million (HK$780 million) for the stake.

In a statement, Global Brands Group said its board believes the disposal represents a strategic opportunity to optimise its business portfolio while realising substantial value from the transactions. “The disposal will enable the group to realise the increase in the value of the Frye brand while retaining the ability to exploit and operate the brand through the licensing arrangement.”

The Authentic Brands Group stable includes Greg Norman, Aeropostale, Juicy Couture, Marilyn Monroe, Spyder and Thalia.