Sequential Brands Group, Inc.
announced on May 10, 2016 that it has signed a definitive agreement to acquire
the branded consumer product business from GAIAM, Inc. for a total purchase price of
approximately $146 million in cash.
As part of the transaction, Sequential will acquire
GAIAM's yoga, fitness and wellness product business - which includes the GAIAM
and SPRI brands - with expansive distribution through Amazon, Kohl's,
Target, and Bed Bath & Beyond, among other leading retailers and e-commerce
channels in the U.S. and abroad. This bolt-on acquisition will seamlessly
integrate into Sequential's Active Division, which is currently anchored
by the AND1 and AVIA brands.
In tandem with the acquisition, Sequential signed long-term
licensing agreements for the brands' core categories, which will become
effective upon closing. Fit For Life will be the licensing partner for the hard
goods and equipment categories as well as the digital properties, and High Life
will be the licensing partner for GAIAM's yoga and athleisure apparel
business.
Eddie Esses, Active Division President at Sequential, added,
"Studies show that over 35 million people in the U.S. practice yoga today, up
76% in the past 4 years, and another 80 million aspire to practice yoga. By
acquiring one of the leading brands in yoga, fitness and wellness, the
opportunities are vast as we think about gaining market share, adding new
distribution and expanding globally."
With a 20+ year heritage, GAIAM is dedicated to making yoga,
fitness and wellness accessible to all through a wide distribution network that
consists of approximately 38,000 retail doors, 19,000 store within stores, 5,000
category management locations, e-commerce, and a newly acquired mobile platform
which features Yoga Studio, the leading paid yoga app for Apple, mobile, and
tablet devices with over 1 million downloads to date.
"The combination of GAIAM's innovative products and
authenticity in the active lifestyle space, coupled with Sequential's extensive
retail relationships and strategic approach to brand building sets the stage for
taking both the brands to new levels," said GAIAM CEO Lynn Powers. "I am happy
to be working with Sequential and the Fit For Life and High Life teams to ensure
the culture of the GAIAM brands live on and grow."
ABOUT SEQUENTIAL BRANDS GROUP, INC.
Sequential Brands Group, Inc. (NASDAQ:SQBG) owns, promotes,
markets, and licenses a portfolio of consumer brands in the fashion, home,
active, and lifestyle categories. Sequential seeks to ensure that its brands
continue to thrive and grow by employing strong brand management, design and
marketing teams. Sequential has licensed and intends to license its brands in a
variety of consumer categories to retailers, wholesalers and distributors in the
United States and around the world. For more information, please visit
Sequential's website at: www.sequentialbrandsgroup.com. To inquire about
licensing opportunities, please email: newbusiness@sbg-ny.com.
Now that you finished reading this exciting fitness apparel
news, you may want to learn more about fitness fashion such as yoga pants in our new
products section.
You can also learn more about Sequential
Brands Group in our fashion company section.