KKR & Co. (KKR) Leads Debt Financing for Galaxy Universal's Acquisition of And1, Avia, Gaiam and SPRI
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Today Galaxy Universal, LLC ("Galaxy" or the "Company"), a portfolio company of Gainline Capital Partners ("Gainline"), announced that it has agreed to acquire the And1, Avia, Gaiam and SPRI brands (together the "Active Brands") from Sequential Brands Group, Inc. ("Sequential") for approximately $330 million. The transaction is subject to the satisfaction or waiver of customary closing conditions, including court approval and is expected to close by mid-November 2021.
This transaction is a continuation of Galaxy's strategy to vertically integrate strong brands under one management operation that controls marketing, design, sales, sourcing and manufacturing. This unique platform will create efficiencies to deliver high quality athletic, work and outdoor products at the best possible value to its customers.
Galaxy is led by CEO Eddie Esses, a footwear and brand management industry veteran. "In this everchanging marketplace, we are strategically positioned to deliver on the customers' constantly evolving expectations. Galaxy is able to provide great brands, unique designs and upgraded quality at exceptional values," Esses said.
Galaxy is rapidly expanding, continuing to build on its vertical platform. This spring, the Company completed the acquisition of Apex Global Brands including, Hi-Tec, Magnum and Tony Hawk. It also has licensing deals with top brands such as Justice, London Fog and many others.
Allan Weinstein, Managing Partner of Gainline, said, "The rich heritage of these brands combined with the passion, experience and unrivaled track record of Mr. Esses and his team distinguishes this investment. We are thrilled to support this team and advance the Galaxy partnership as the company expands and future acquisition opportunities present themselves."
KKR led the debt financing for the acquisition and will participate as a co-investor. "Galaxy's vertical integration strategy and strong specialization in active products positions the company to take these great brands to new heights," said Lauren Krueger, Managing Director at KKR. "We are excited to finance the deal and invest in the future of the company as a strategic partner with the Galaxy and Gainline teams."
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