Sequential Brands Group acquires Ellen Tracy & Caribbean Joe Brands
April 4, 2013,
Sequential also owns William Rast, People's Liberation, DVS Action Sports, Heelys. As a public company, Sequential is positioned to move rapidly on additional brand acquisitions, according to Rick Platt, group president. Platt had been president of Brand Matter.
Yehuda Shmidman, ceo of Sequential, commented, "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."
Prior to joining Sequential Brands Group in late 2012, Shmidman served as the chief operating officer of Iconix Brand Group. Over the span of seven years with Iconix, he held multiple positions of increasing responsibility, ranging from head of global business development to direct involvement with mergers & acquisitions, global joint ventures, corporate finance, and investor relations, leading to his promotion to coo in 2010. Before that, Shmidman worked at a startup licensing agency in New York that launched several direct-to-retail brands, including Isaac Mizrahi at Target, "Merch" Vintage Rock at Kmart and Fieldcrest at Target.
Alok Industries and Bolan Trading are the home textiles licensees for Ellen Tracy. Alok is the home textiles licensee for Caribbean Joe.
Platt said some of Sequential's existing brands could be extended into home, adding the company is on the hunt for more brands. "All six brands are core apparel brands, so absolutely we want to get a more rounded stable of brands," he said.
Sequential is projecting forward 12-month royalty revenues of $23 million to $25 million from its six brands, operating at 50% EBITDA margin. In addition, the company's combined brands have approximately $80 million in aggregate minimum royalty revenue contractually guaranteed to Sequential.
Related Content By Author
TEN Collection Wows High Point Market
Home Textiles Today eDaily
Most Viewed Articles
See the November 2017 issue of Home Textiles Today. In this issue, we look at Complex Colors, Complex Times--Trend forecasters and interior designers weigh in on 2018 palettes and motifs. Other articles include: Data: Exclusive HTT soft window research; Innovation: Material Changes conference preview; Country report: India invests in the future and Fabrics: Showtime preview.