The Carlyle Group has sold Galaxy Brand Holdings, which includes the fitness brand Avia and basketball brand AND1, to Sequential Brands Group (NASDAQ: SQBG); the terms of the deal include approximately $100 million in cash and 13.75 million shares of common stock in Sequential (worth about $184 million as of Monday’s close), plus certain performance-based warrants.
Sequential expects the deal to increase the company’s annual global retail sales from about $1 billion to nearly $2 billion. Projected revenue for the 2014 fiscal year has grown to $36 to $40 million (up from $28 to $30 million). Sequential’s diluted share count following the transaction is about 40 million, giving Carlyle a significant stake in the company. Financing was provided by Bank of America and GSO Capital Partners. Sequential amended existing debt facilities and entered into a new second lien facility with GSO, totaling about $180 million in the aggregate.