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 26th May 2017
There's a new eco-friendly fibre on the anvil—Austrian speciality...
Apparel/Garments | On 26th May 2017
The first quarter revenue of fiscal 2017 at apparel marketer PVH Corp ...
The S Studio
Ethnicwear market will see an upward trend if uniqueness and quality are...
'In export markets, the trend in terms of embroidery, is towards matte...
‘In future, clothing boundary lines will become increasingly blurred.’
Iago Castro Asensio
RCfil Distribuciones S.L.
Iago Castro Asensio, International Business Manager of RCfil...
Nature Works LLC
Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...
Steve Cole of Xerium Technologies discusses the industry. Xerium is the...