Sequential Brands Group is close to a deal to acquire Galaxy Brand Holdings.
Financial sources expect the agreement to be inked by midnight tonight. The transaction is expected to be a cash and stock deal, plus performance based warrants. Carlyle will become a significant shareholder of Sequential.
Galaxy Brand Holdings is owned by The Carlyle Group. Galaxy owns the fitness brand Avia, basketball brand AND1, outdoor brand Nevados and home goods brand Linens ‘N Things.
The deal is expected to give Rodney Cohen, managing director at Carlyle, a seat on Sequential’s board.
The deal is particularly transformative for Sequential. Presuming a deal gets completed, Sequential will own 12 global brand under its umbrella. More importantly, it will likely become the third largest brand licensing firm in the U.S., behind Iconix Brand Group and Authentic Brands Group.
Sequential executives could not be reached for comment.