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.
Textiles | On 17th Oct 2017
Pressures on the profit and debt levels of textiles exporters is...
Fashion | On 17th Oct 2017
South Korean fashion firms are keen on tapping into overseas markets...
Apparel/Garments | On 17th Oct 2017
Representatives from the Garment Manufacturers Association of...
Indian textile value chain
Adopt innovative techniques, go for automisation rather than being...
‘Buying crowdsourced or creative designs are much more appealing to the...
Navigating through catalogues is a bit hasslesome
New Delhi-based Jogindra Industries Private Limited provides an assortment ...
Kusumgar Corporates is a leading manufacturer of technical textiles and...
Idealin Fogging Systems has been engaged in designing and manufacturing...
Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...
Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...
Voith Paper GmbH & Co. KG
The glass mat industry is growing by five to eight per cent annually. Kai...
Whistling Woods International School of Fashion
<div>A lack of upgraded courses in costume designing and fashion as per...
Bridal couture created with rich Indian heritage, exquisite craftsmanship...
"We should not compare India and the West. There are things we do that...
Apparel/Garments | On 16th Oct 2017
Do you think the sustainability space has the needed tools and resources available for a business to lead change?Yes No Skip
Do you see sustainability as a route to business growth?Yes
Total Votes: 65
Do you think adopting a sustainable approach will be a profitable move for your business?Yes No Skip
Do you think the sustainability space has the needed tools and resources available for a business to lead change?Yes
Total Votes: 65
Do you want the world to know about your sustainability journey and your business’ environmental footprint?Yes No Skip
Do you think adopting a sustainable approach will be a profitable move for your business?Yes
Total Votes: 65
Thanks for your valuable feedback. Claim your free latest sustainability e-book.
Do you want the world to know about your sustainability journey and your business’ environmental footprint?Yes
Total Votes: 65