Sequential Brands acquires Gaiam yoga brand

By

Obi Anyanwu

Published
May 11, 2016

Sequential Brands Group, Inc. announced on Tuesday that it has acquired Gaiam, Inc. for approximately $146 million in cash.

 
As per the definitive agreement, Sequential will acquire Gaiam’s yoga, fitness and wellness product business, including the Gaiam and Spri brands, which will seamlessly integrate into Sequential’s Active Division with And1 and Avia.
 
Sequential also signed long-term license agreements for Gaiam’s core categories. 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.

The deal is expected to add $22 million in revenue and $20 million of adjusted EBITDA for Sequential on a full year run rate basis, increasing the company’s twelve-month run rate projection from $150 million to $155 million of revenue to $172 million to $177 million, and from $92.5 million to $95 million of adjusted EBITDA to $112 million to $115 million. In addition, guaranteed minimum royalties are expected to increase from $360 million to over $500 million.
 
Gaiam is a yoga, fitness and wellness brand with a 20-plus year heritage. The brand has a wide distribution network that spans 38,000 retail doors, 19,000 stores within stores, 5,000 category management locations and e-commerce.