Feb 18, 2021
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Apex Global Brands to be acquired by Galaxy Universal

Feb 18, 2021

Sherman Oaks, California-based brand management company Apex Global Brands Inc., whose portfolio includes Cherokee, Hi-Tec, and Interceptor, announced on Tuesday that it has entered into an agreement to be acquired by Galaxy Universal LLC.

Apex's brand potfolio includes Cherokee and Hi-Tec - Instagram: @hitec

The merger, which has been unanimously approved by Apex’s board of directors, is an all-cash deal that will see Galaxy Universal acquire all of the company’s 564,000 outstanding shares for $2.00 per share.
Following the merger, which is expected to complete in the second quarter of 2021, Apex will be wholly owned by Galaxy Universal.

“After conducting an extensive analysis of our strategic alternatives with our financial advisor, the Board of Directors concluded that our sale to Galaxy Universal LLC is the best path to deliver equity to our shareholders,” commented Apex CEO Henry Stupp in a release. “We believe that the sale process will be seamless for our licensees and that there will be no disruption to our operations.”
The deal is subject to approval by Apex stockholders, as well as other customary closing conditions. The company said that a special stockholder meeting will be held as soon as is practicable.
Certain stockholders in possession of around 30% of Apex’s outstanding shares have entered into a voter agreement which commits them to vote in favor of the merger agreement. These stockholders include Apex’s officers and directors.
Apex currently has license agreements with retailers and manufactures in around 140 countries. Its products are present in more than 20,000 retail locations around the world, as well as on a range of e-commerce platforms.
In the third quarter ended October 31, 2020, the company’s revenues totaled $4.1 million, down 17% from $4.9 million in the same period in the previous year. Net loss for the quarter was $6.0 million, or $10.58 per diluted share.
Galaxy Universal’s operations include wholesaling, sourcing and brand management. The company’s areas of focus include the athletic, work and outdoor categories.

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