Galaxy Universal LLC, a portfolio company of Gainline Capital Partners, has agreed to acquire the And1, Avia, Gaiam and SPRI brands from Sequential Brands Group Inc. for approximately $330 million.
Galaxy CEO Eddie Esses said, “In this everchanging marketplace, we are strategically positioned to deliver on the customers’ constantly evolving expectations. Galaxy is able to provide great brands, unique designs and upgraded quality at exceptional values.”
Allan Weinstein, managing partner of Gainline, said, “The rich heritage of these brands combined with the passion, experience and unrivaled track record of Mr. Esses and his team distinguishes this investment. We are thrilled to support this team and advance the Galaxy partnership as the company expands and future acquisition opportunities present themselves.”
KKR led the debt financing for the acquisition and will participate as a co-investor. KKR is making its investment in Galaxy through certain private credit managed accounts.
“Galaxy’s vertical integration strategy and strong specialization in active products positions the company to take these great brands to new heights,” said Lauren Krueger, managing director at KKR. “We are excited to finance the deal and invest in the future of the company as a strategic partner with the Galaxy and Gainline teams.”
Houlihan Lokey Inc. acted as exclusive financial advisor and Willkie Farr & Gallagher LLP acted as legal advisors to Galaxy Universal LLC. Credit Suisse Securities (USA) LLC acted as exclusive placement agent to Gainline Capital Partners. Province acted as financial advisor and King & Spalding LLP acted as legal advisor to KKR. Stifel and its affiliate Miller Buckfire acted as financial advisors and Gibson, Dunn & Crutcher LLP were legal advisors to Sequential Brands.