NEW YORK—Sequential Brands Group Inc has acquired the Ellen Tracy and Caribbean Joe brands for $62.3 million in cash and about 2.8 million shares of Sequential stock.
Sequential CEO Yehuda Shmidman 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. 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.”
Sequential’s other brands are William Rast, People’s Liberation, DVS Action Sports and Heelys.
The company also reported fourth-quarter numbers today: sales were $1.8 million, up from the prior year’s fourth-quarter sales of $400,000. However, the company reported a wider loss of $900,000 (excluding items), compared to last year’s Q4 loss of $400,000.
“2012 was a transformational year for the company as we closed down our wholesale and retail operations and re-launched our company under a new name, Sequential Brands Group, with a new business model, being a focused brand management company,” commented CEO Shmidman. “Over the past year, we were pleased to have announced the beginning steps of our new business model, including two brand acquisitions and a $22.4 million private placement of equity which strengthened our balance sheet in support of our growth plan.”