Galaxy Universal will acquire Sequential's Active Brands for $330 million.

Galaxy Universal will acquire Sequential's Active Brands for $330 million.

Tags : Galaxy Universal will acquire Sequential's Active Brands for $330 million, 

Galaxy Universal will acquire Sequential's Active Brands for $330 million.

Sequential's active brands have a new owner.

Galaxy Universal, LLC announced Friday that it would acquire Sequential's active brand portfolio, which includes And1, Avia, Gaiam and SPRI. Court approval is required for the deal, which is valued at close to $330 million. It is expected to close in mid-November.

Samsung was initially considered the stalking horse bidder after it bid $333 million in August.

New York-based Galaxy markets, designs, sells, sources and manufactures athletic and work footwear in more than 40,000 stores. In addition, the company owns Hi-Tec, Interceptor, Magnum, Tony Hawk, as well as Justice, London Fog, And1 and Avia. Gainline Capital Partners, a private equity firm, owns Galaxy. KRR, which provided debt financing for the deal, will serve as a co-investor.

We are strategically positioned to meet customers  constantly changing expectations in this ever-changing marketplace, said Galaxy CEO Eddie Esses. Galaxy provides great brands, unique designs, and enhanced quality at exceptional values.

Sequential Brands Group, Inc., which owns Jessica Simpson and Joe's Jeans, filed for Chapter 11 bankruptcy protection in August. Due to "significant debt on its corporate balance sheet," the company was no longer able to operate its portfolio.

Gainline managing partner Allan Weinstein said, "The rich heritage of these brands, coupled with the experience and track record of Mr. Esses and his team, distinguishes this investment." He added, "We are delighted to support this team as Galaxy expands and future acquisition opportunities present themselves."

Sequential had a net debt of $452.3 million as of December 31, 2020, according to financial documents. The company sold some of its brands this year to repay lenders. In August, Sequential sold the Ellen Tracy and Caribbean Joe Island Supply Co. brands to the GMA Group for a total of $20 million. In April, it sold its Heeling Sports brand BBC International for $11 million.

Jessica Simpson told FN last month that she and her mother were close to buying back the remaining 62.5% of her business. Sequential acquired a majority stake in the label in 2015, with Camuto Group continuing to manufacture the collection's footwear. Jessica and Tina own 37.5% of the company.

Galaxy Universal will acquire Sequential's Active Brands for $330 million.


Tags : Galaxy Universal will acquire Sequential's Active Brands for $330 million, 

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