Sequential Brands closes Gaiam Inc. acquisition
Sequential Brands Group announced on Tuesday that it has closed its acquisition of Gaiam, Inc. for approximately $146 million in cash.
As per the transaction, Sequential acquires Gaiam’s yoga, fitness and wellness product business, including Gaiam and Spri brands, which will be added to the company’s Active Division that includes brands And1 and Avia.
The company increased its twelve-month run rate projection from $150-$155 million in revenue to $172-$177 million in revenue and $92.5-$95.0 million of adjusted EBITDA to $112-$115 million. The run rate projection is anticipated after the completion of the integration of the Martha Stewart business.
In addition, Sequential increased its full year 2016 projection from $145-$150 million of revenue to $155-$160 million of revenue and its adjusted EBITDA projection from $83-$87 million to $88-$91 million.
In the first quarter of 2016, Sequential’s revenue increased 150% to $34 million and the adjusted EBITDA doubled to $16.7 million.
The Gaiam, Inc. acquisition began in May 2016.
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