Sequential’s lively manufacturers have discovered a brand new proprietor.
Galaxy Common, LLC mentioned Friday that it’s going to purchase Sequential’s lively model portfolio, which incorporates the And1, Avia, Gaiam and SPRI manufacturers. The deal, which is valued at near $330 million, is anticipated to shut by mid-November and is topic to courtroom approval.
Galaxy was initially poised because the stalking horse bidder for the manufacturers after it bid $333 million in August.
The New York-based Galaxy markets, designs, sells, sources and manufactures athletic and work footwear in over 40,000 shops. The corporate additionally owns Hello-Tec, Interceptor, Magnum, Tony Hawk and is a licensee of the Justice, London Fog, And1 and Avia manufacturers. Galaxy is a portfolio firm of Gainline Capital Companions, a non-public fairness agency. World funding agency KRR, which led debt financing for the deal, will function a co-investor.
“On this ever-changing market, we’re strategically positioned to ship on the shoppers’ continually evolving expectations,” mentioned Galaxy chief govt officer Eddie Esses. “Galaxy is ready to present nice manufacturers, distinctive designs and upgraded high quality at distinctive values.”
Sequential Manufacturers Group, Inc., which additionally owns the Jessica Simpson and Joe’s Denims manufacturers, filed for Chapter 11 chapter safety in August. The corporate mentioned that “vital debt on its company steadiness sheet” made it not capable of function its portfolio.
“The wealthy heritage of those manufacturers mixed with the eagerness, expertise and unequalled monitor document of Mr. Esses and his group distinguishes this funding,” mentioned Allan Weinstein, managing companion of Gainline. “We’re thrilled to assist this group and advance the Galaxy partnership as the corporate expands and future acquisition alternatives current themselves.”
In response to monetary documents, Sequential had an impressive internet debt of $452.3 million as of Dec. 31, 2020. To pay again lenders, the corporate offered a few of its manufacturers this 12 months. Sequential sold the Ellen Tracy and Caribbean Joe Island Provide Co. manufacturers to the GMA Group for a complete of $20 million in August. It additionally sold its Heeling Sports activities model BBC Worldwide for $11 million in April.
Jessica Simpson told FN final month she and her mom had been closing in on a deal to purchase again the remaining 62.5 % of her model. In 2015, Sequential acquired a majority stake within the label, with the Camuto Group persevering with to provide the gathering’s footwear. Jessica and Tina at present personal 37.5 % of the model.
https://wwd.com/business-news/monetary/galaxy-universal-buys-sequentials-active-brands-for-330m-1234986720/ | Galaxy Common to Purchase Sequential’s Energetic Manufacturers in $330M Deal – WWD