With the Franklin Mint brand now under Sequential Brands Group Inc.’s umbrella, can collectible jewelry and fashion memorabilia be far behind?
Sequential, a brand management firm, said Monday it acquired Franklin Mint for an undisclosed amount. The company plans to continue Franklin’s history of commemorating special events, such as the Kate Middleton doll that was introduced at the time of her wedding to Prince William, as well as add new product offerings through expanded channels of distribution. Franklin Mint, which represents the fifth brand added to Sequential’s portfolio this year, was founded in 1964 by Joseph Segel, who went on to found home shopping network QVC.
Yehuda Shmidman, chief executive officer of Sequential, on Monday didn’t rule out collectibles in the jewelry and fashion sector, noting that the company is still in the early stages of exploring opportunities for expansion.
Sequential also posted third-quarter results for the period ended Sept. 30, in which the brand management firm said its net loss was $1.2 million, or 5 cents a diluted share, versus a loss of $472,000, or 20 cents, a year ago. Revenues rose to $6.1 million from $1.3 million. Results for the quarter include contributions from the four acquisitions Sequential completed earlier this year. Also completed in the quarter was a $44 million raise through a private placement.
According to Shmidman, “Looking ahead, we believe we are well positioned to both achieve our organic growth targets and to continue to expand our portfolio with the acquisition of new brands, as we aim to be a leading global brand management firm.”
The company projected revenues of between $28 million and $30 million over the next four quarters, with revenue for 2013 to be weighted to the fourth quarter due to seasonality in the businesses of many of Sequential’s licensees.