Sequential Brands Group Inc. has acquired the Revo sunglass brand for $20 million in cash from Oakley Inc., which is owned by Luxottica Group SpA.
The cash transaction, which represents the fourth deal Sequential has completed so far this year, will be funded through cash on hand. Earlier in the year, the brand management firm picked up Heelys, Ellen Tracy and Caribbean Joe. The firm has a total of seven brands in its portfolio. The other brands are William Rast, People’s Liberation and DVS Action Sports.
Revo is a high-end performance line that contains the same technology NASA uses for satellites to deflect radiation. The glare-blocking feature via high-contrast polarized lens technology is ideal for outdoor sports and activities as it blocks 100 percent of UVA, UVB and UVC light.
Following the sale of Revo, Luxottica will still have as its high-end performance brands Ray-Ban and Persol. Luxottica, started in 1961 by Leonardo Del Vecchio, acquired Persol in 1995, Ray-Ban in 1999, Sunglass Hut International Inc. in 2001 and Oakley in 2007. Revo, launched in 1985, was part of the Ray-Ban acquisition from Bausch + Lomb, and later moved under the Oakley umbrella.
It was Revo’s premium performance positioning that attracted Sequential to the brand, according to Yehuda Shmidman, the group’s chief executive officer.
“The vision we have for the brand is one where we believe Revo can be extended to many relevant categories within performance: outdoor space, outdoor gear, footwear, active apparel and technical apparel for outdoors. We believe this is a unique opportunity to leverage a brand that’s truly authentic,” Shmidman said.
Sequential has signed a long-term partnership agreement with Sunglass Hut to continue the distribution of Revo-branded eyewear at Sunglass Hut stores globally. The agreement with Sunglass is nonexclusive, so Revo-branded eyewear can be sold at other retailers as well.
B. Robinson also inked an agreement with Sequential for a long-term licensing agreement for the manufacture of Revo sunglasses and related product. The eyewear manufacturer also manufactures for Cole Haan, Cynthia Rowley and Izod.
While the ceo declined to discuss the brand’s volume, he noted, “Sequential is actively eyeing brands that it believes can do $100 million at retail over the next few years.”
In that quest, Sequential is still in acquisition mode and expects to do more deals. It is hoping to do two to three deals a year over the next few years.
As for the opportunities that are out there, Shmidman said, “These are interesting times. There are a number of brands that we believe will change hands. We are really focusing on brands where we have the ability to grow them within our brand management licensing model.”
Sequential at the end of July closed on a private placement with a group of accredited investors in which the firm netted $44 million from the sale of 8 million shares of common stock exempt from Securities and Exchange Commission registration at $5.50 a share. Sequential ended the month with $57 million in cash on hand. Following the Revo transaction, Sequential has $37 million in cash on its balance sheet to support its acquisition strategy. The company also has leveraged financing available through Bank of America Merrill Lynch.
Sequential posted net income of $693,000, or 4 cents a diluted share, for the second quarter ended June 30, against a net loss of $878,000, or 37 cents, a year ago. Licensing and other revenue jumped to $4.3 million from $1 million. The company converted its business to the current brand management model last year.
“My personal philosophy to beauty is paying attention to oneself. I love to be outdoors, lots of fresh air, trying to take care of yourself as best you can. I always notice that comes through,” says Felicity Jones, the global face of @shiseido-owned @cledepeaubeauteus, which launches today. Head to WWD.com to read more about the actress’ love for beauty and how she prepared for her new role in “The Basis of Sex,” playing the young Ruth Bader Ginsburg. #wwdbeauty (📷: @dandoperalski)
For men’s fall 2018, @giuseppezanotti drew on elements from streetwear, sport, biker, combat and rock ‘n’ roll. Pictured here are a pair of shoes from the collection, featuring zippers, rhinestones, and silver hardware. Head to WWD.com to see a roundup of the accessories from Milan’s men’s fall 2018 shows. #wwdfashion (📷: Andrea Delb)
To celebrate the 25th anniversary of @ralphlauren’s snowboarding collection, the brand is mining its archives. The iconic brand is reintroducing vintage styles and dropping new designs for a color capsule that will be available in Ralph Lauren stores and @openingceremony on January 25. The capsule will consist of 10 pieces, including the Snow Beach Pullover, pictured here, which is a collector’s item that rapper Raekwon wore in Wu-Tang Clan’s “Can It Be All So Simple” video. #wwdfashion (📷: Tom Gould)
For @rochasofficial’s pre-fall 2018 collection, creative director Alessandro Dell’Acqua channeled the sophisticated and intriguing Catherine Denevue in the film “Belle de Jour.” Polished collarless coats, midi skirts, suits and ’60s graphic motifs were all featured in the collection, adding a sense of discreet luxury. See the rest of the photos on WWD.com #wwdfashion
“We tried to produce clothing of that couture quality, but the most daunting part was that we only had a matter of days [to do it],” said costume designer Lou Eyrich, who recreated Gianni Versace’s iconic looks for @americancrimestoryfx. Eyrich searched online retailers and vintage shops for original pieces from the design house and for @penelopecruzoficial, who plays Donatella Versace. Head to WWD.com to read how she created the Versace world. #wwdfashion
Only three months after her stellar debut catwalk season, @kaiagerber has inked her first big design collaboration –– with @karllagerfeld. The collection blends Lagerfeld’s Parisian chic aesthetic and the model’s signature West Coast casual style via RTW, accessories, footwear and more. The #KarlLagerfeldxKaia collection will launch in September with a series of events. Get all the details on WWD.com. #wwdnews #wwdfashion
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews