“We are thrilled that this acquisition also brings the expertise of Eddie Esses and the Galaxy team who will continue to lead the business for the newly acquired brands,” added Shmidman. We were attracted to these four brands for both their existing licensing base as well as the strong prospects for continued organic growth in the future.” Yehuda Shmidman, CEO of Sequential, commented, “This merger is a game changer for Sequential, as it doubles the scale of our brand portfolio and further diversifies our licensee and distribution platform. Galaxy currently has over 15 licensees with significant business at Walmart coupled with complementary distribution to a wide range of mid-tier and specialty retailers. In the transaction, Sequential will acquire four well-known consumer brands that include the fitness brand Avia®, basketball brand AND1®, outdoor brand Nevados®, and home goods brand Linens ‘N Things®. The transaction, which is expected to close by the end of 2014, is subject to customary closing conditions and regulatory approval. This transformational acquisition will position Sequential as one of the largest pure-play brand licensing companies in the world, with a portfolio of twelve global consumer brands generating nearly $2 billion in global retail sales annually. (“Galaxy”) for $100 million in cash, 13.75 million shares of common stock of the Company, and certain performance based warrants. (NASDAQ:SQBG) (“Sequential” or the “Company”) announced today that it has signed a definitive agreement to acquire Galaxy Brand Holdings, Inc. Debt financing for the transaction led by Bank of America and affiliates of Blackstone Group.Forward looking twelve month projected Adjusted EBITDA run rate expected to increase to $36 - $40 million. Forward looking twelve month revenue run rate of Sequential expected to increase from range of $28 - $30 million to approximately $56 – $60 million.The Carlyle Group, majority owner of Galaxy Brand Holdings, to become significant shareholder in Sequential.Annual Global Retail Sales for Sequential’s brands expected to grow from approximately $1 Billion to nearly $2 Billion.Transformational Acquisition Increases Sequential’s Portfolio from 8 to 12 brands with the addition of Avia®, AND1®, Nevados® and Linens ‘N Things®
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