Galaxy Universal to Acquire Leading Active Brands And1, Avia, Gaiam and SPRI
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
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