PR92763

NEW YORK, Nov. 2, 2021 /PRNewswire=KYODO JBN/ --

-- Acquisition to build on Galaxy's successful vertical integration strategy

Today Galaxy Universal, LLC ("Galaxy" or the "Company"), a portfolio company of

Gainline Capital Partners ("Gainline"), announced that it has agreed to acquire

the And1, Avia, Gaiam and SPRI brands (together the "Active Brands") from

Sequential Brands Group, Inc. ("Sequential") for approximately $330 million.

The transaction is subject to the satisfaction or waiver of customary closing

conditions, including court approval and is expected to close by mid-November

2021.

This transaction is a continuation of Galaxy's strategy to vertically integrate

strong brands under one management operation that controls marketing, design,

sales, sourcing and manufacturing. This unique platform will create

efficiencies to deliver high quality athletic, work and outdoor products at the

best possible value to its customers.

Galaxy is led by CEO Eddie Esses, a footwear and brand management industry

veteran. "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," Esses said.

Galaxy is rapidly expanding, continuing to build on its vertical platform. This

spring, the Company completed the acquisition of Apex Global Brands including,

Hi-Tec, Magnum and Tony Hawk. It also has licensing deals with top brands such

as Justice, London Fog and many others.

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. "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."

KKR is making its investment in Galaxy through certain private credit managed

accounts.

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 advisors to KKR. Stifel and its affiliate Miller Buckfire acted as

financial advisors and Gibson, Dunn & Crutcher LLP acted as legal advisors to

Sequential Brands Group.

About Galaxy

Headquartered in New York, NY, Galaxy Universal LLC is a global vertically

integrated marketing, design, sales, sourcing and manufacturing company that

specializes in the athletic, health and wellness, outdoor and work categories.

Owned brands include And1, Avia Cherokee, Gaiam, Hi-Tec, Interceptor, Magnum,

SPRI, Tony Hawk and more. The Company is a licensee of the Justice and London

Fog brands, among others. With a worldwide distribution network, Galaxy sells

branded athletic and work footwear in over 40,000 stores.

About Gainline Capital Partners

Gainline Capital Partners is a private equity firm that invests in profitable,

U.S.-based middle market companies. The firm focuses on being the first

institutional capital and specializes in partnering with management teams to

help execute their vision, drive sustainable growth and create long term value.

www.gainlinecapital.com

About KKR

KKR is a leading global investment firm that offers alternative asset

management and capital markets and insurance solutions. KKR aims to generate

attractive investment returns by following a patient and disciplined investment

approach, employing world-class people, and supporting growth in its portfolio

companies and communities. KKR sponsors investment funds that invest in private

equity, credit and real assets and has strategic partners that manage hedge

funds. KKR's insurance subsidiaries offer retirement, life and reinsurance

products under the management of The Global Atlantic Financial Group.

References to KKR's investments may include the activities of its sponsored

funds and insurance subsidiaries. For additional information about KKR & Co.

Inc. (NYSE: KKR), please visit KKR's website at www.kkr.com and on Twitter

@KKR_Co.

SOURCE Gainline Capital

CONTACT: Media Contact: Lisa Schein, lschein@galaxycorp.com