Sequential Brands Group (Nasdaq: SQBG) has closed a deal for Galaxy Brand Holdings from the Carlyle Group (Nasdaq: CG).
Galaxy is a brand management and licensing company. The acquisition brings fitness brand Avia, basketball brand And1, outdoor group Nevados and home goods brand Linens 'N Things into Sequential.
The purchase price works out to $100 million in cash plus 13.75 million shares of Sequential Brands stock. As a result of the stock transaction, Carlyle now owns about 15 percent of Sequential, and Carlyle managing director Rodney Cohen is joining the company's board of directors.
New York-based Sequential owns, promotes, licenses and markets a portfolio of consumer brands that includes Ellen Tracy, William Rast, Revo, Caribbean Joe, Heelys, DVS, the Franklin Mint and People's Liberation. The company picked up roller-shoe brand Heelys in January 2013, and has since started making adult roller-shoes, which now make up a significant portion of the brand's online business.
Bank of America and GSO Capital Partners LP, an affiliate of the Blackstone Group (NYSE: BX), provided financing for the deal. Sequential amended its credit facility with Bank of America and entered into a new second-lien facility with GSO Capital Partners totaling $180 million.
Other recent consumer goods deals include footwear company Steve Madden's (Nasdaq: SHOO) acquisition of Dolce Vita Holdings Inc. for about $60 million earlier in August, and HIG Growth Partners' investment in LuLu's Fashion Lounge.