Home / Knowledge / News / Apparel/Garments / Sequential Brands acquires Ellen Tracy & Caribbean Joe
Sequential Brands acquires Ellen Tracy & Caribbean Joe
30
Mar '13
Sequential Brands Group, Inc. announced that it acquired the intellectual property management company that owns two consumer lifestyle brands, Ellen Tracy and Caribbean Joe. The purchase price of the transaction was comprised of $62.3 million in cash and approximately 2.8 million shares of common stock of Sequential.

Yehuda Shmidman, CEO of Sequential, commented, "Today's acquisition represents the completion of Sequential's base platform, as we acquired two strong brands and a proven activation team led by Rick Platt, who joins Sequential as Group President, Brand Management." Mr.

Shmidman continued, "With the addition of both Ellen Tracy and Caribbean Joe, Sequential's portfolio now includes six brands that have more than 50 licensees and an expected run-rate of close to $1 billion in retail sales worldwide. With our brand management platform in place, our plan is to focus on growing each brand in our portfolio, while aggressively pursuing new brands as well.")

Ellen Tracy was founded in 1949, and over the years, the brand grew into a leading fashion brand distributed in premium department and specialty stores. The evolution of the brand continued in 2010, when, Macy's became the exclusive sportswear retailer for Ellen Tracy and the brand began launching internationally, most recently in Karstadt Germany.

In addition to its successful apparel collections, Ellen Tracy expanded to include collections for footwear, outerwear, legwear, hosiery, belts, eyewear, fragrance, handbags, jewelry and home.

Caribbean Joe is an island inspired lifestyle brand distributed in more than 10,000 retail locations with product categories that range from men's and women's apparel to swimwear and accessories.Both Ellen Tracy and Caribbean Joe are currently licensed to leading licensees including Li & Fung, Komar and G-III Apparel Group.

The Company estimates that these two brands together will generate between $12 and $14 million in royalty revenues in the next 12 months. On a combined basis with the Company's existing brand portfolio, the Company is projecting forward 12-month royalty revenues of $23-25 million from its six brands, operating at 50% EBITDA margin.

The Company's EBITDA margin is expected to expand as the Company leverages the platform to acquire additional brands. After giving effect to the consummation of the acquisition, the related financing transactions and payment of related transaction costs and expenses, the Company will have approximately $15 million of cash on its balance sheet. In addition, the Company's six brands have approximately $80 million in aggregate minimum royalty revenue contractually guaranteed to the Company.

The Company's financing efforts were led by Bank of America who provided for a $45 million loan to the Company and led a separate group who provided for an additional $20 million loan to the Company.

About Sequential Brands Group

Sequential Brands Group, Inc. owns, promotes, markets, and licenses a portfolio of consumer brands that presently include William Rast, People's Liberation, DVS Action Sports, Heelys, Caribbean Joe and Ellen Tracy. Sequential seeks to ensure that its brands continue to thrive and grow by employing strong brand management, design and marketing teams.

Sequential Brands


Must ReadView All

Textiles | On 26th Jul 2017

Q1 2018 revenue at Raymond soars 14%

The consolidated revenue of Raymond Limited for the first quarter of...

Textiles | On 26th Jul 2017

Textile Corp of America to create 1000 jobs in Tennessee

Textile Corporation of America Inc, a leading textile manufacturer,...

Textiles | On 26th Jul 2017

Leather & footwear industry expecting incentive package

India’s leather and footwear industry is anticipating an incentive...

Interviews View All

Karin Ekberg
Leadership & Sustainability

Sustainable models are beneficial for brands, retailers and manufacturers

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Darshan Mehta
Infinium Polychem

We are spending double digit figures on R&D

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X