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Sequential Brands Group Inks Deal for Galaxy Brand Holdings

Carlyle Group becomes a significant shareholder in Sequential.

Sequential Brands Group is set to acquire Galaxy Brand Holdings.

The deal involves $100 million in cash, 13.75 million shares of Sequential common stock and performance based warrants.

The Carlyle Group, which owns Galaxy, will become a significant shareholder in Sequential. Rodney Cohen, managing director at Carlyle, will become a Sequential board member.

Galaxy owns the Avia, AND1, Nevados and Linen ‘Things brands. Eddie Esses, the chief executive officer of Galaxy, will continue to run the Galaxy business. Other members of Galaxy’s team are also expected to stay on and become employees of Sequential.

With the deal, which is expected to close at year end, Sequential will own 12 global brands having a total to $2 billion in global retail sales.

The debt financing was provided by Bank of America and affiliates of The Blackstone Group.