Sequential Brands Group and Global Brands Announce Strategic Partnership for Joe’s Brand
Long-Term Licensing Agreement With Global Brands Signed for Core Categories
Brand Founder Joe Dahan to Continue Leading Product Design as Creative Director
HONG KONG and NEW YORK, Sept. 8, 2015 (GLOBE NEWSWIRE) — Sequential Brands Group, Inc. (SQBG) (“Sequential” or the “Company”) announced today that it has signed a definitive agreement to acquire the Joe’s brand (the “Brand”) and certain other related assets for a total purchase price of approximately US$67 million. In tandem with the acquisition, the Company announced the signing of a long-term licensing agreement for all of the brand’s core categories with Global Brands Group Holding Limited (“Global Brands”; SEHK Stock Code:787), one of the world’s leading branded apparel, footwear, fashion accessories, and lifestyle product companies. The long-term licensing agreement will become effective upon closing of the acquisition.
The Joe’s brand joins Global Brands’ extensive portfolio of fashion and lifestyle brands. Under the licensing agreement, Global Brands will design, produce, and distribute products across multiple categories including womenswear and menswear. Sequential will oversee the global marketing strategy for key brand initiatives. Brand founder Joe Dahan will continue to lead product design and brand marketing as Creative Director.
Bruce Rockowitz, Chief Executive Officer and Vice Chairman of Global Brands Group Holding Limited, said, “Joe’s is an important addition to our brand portfolio in a key fashion category. Denim is trending strongly right now and we are excited about the future growth opportunities for the brand.”
“Joe’s is a natural fit for Sequential as the brand seamlessly integrates into our fashion vertical,” stated Yehuda Shmidman, CEO of Sequential. “In addition, with a strategic global licensing partnership secured with Global Brands and Joe Dahan’s renewed commitment to the brand’s future, we believe that all together, we have a winning team in place to grow the Joe’s brand around the world.”
“We are delighted to be working with our partners at Sequential,” said Dow Famulak, President and Chief Operating Officer of Global Brands Group Holding Limited. “The combination of Global Brands’ extensive retail relationships, strong design skills and distribution capabilities and Joe’s popularity sets the stage for taking the brand to a new level.”
Joe Dahan, Founder of Joe’s Jeans, added, “I am thrilled about the partnership with Sequential and look forward to keeping the heritage of the Joe’s Jeans brand as we enter our next phase of growth together with Global Brands and their extensive global platform.”
Founded in 2001, Joe’s(R) is a casual chic global lifestyle brand synonymous with classic, modernized wardrobe staples ranging from premium denim to handcrafted collection pieces, and from contemporary accessories to footwear. With over 12 years of influence in the fashion industry, Joe’s(R) has remained true to its DNA throughout its expansion, embracing fashion and innovation through the creation of a fully faceted line for men, women and kids. Joe’s(R) is available coast to coast at fine department stores and specialty boutiques in the USA and internationally throughout Europe, Asia, Canada and Latin America at stores such as Nordstrom’s, Harrods, Liberty, Galeries Lafayette, Le Bon Marche, Printemps and Tsum.
The first range of Joe’s(R) products produced in collaboration with Global Brands will launch in Spring 2016.
Sequential has obtained committed financing from GSO Capital Partners LP, an affiliate of Blackstone Group. White & Case LLP acted as legal counsel to the Company. The transaction is expected to close in September 2015, and Sequential expects to provide further financial information at that time.
ABOUT SEQUENTIAL BRANDS GROUP, INC.
Sequential Brands Group, Inc. (SQBG) owns, promotes, markets, and licenses a portfolio of consumer brands in the fashion, active, and lifestyle categories. Sequential seeks to ensure that its brands continue to thrive and grow by employing strong brand management, design and marketing teams. Sequential has licensed and intends to license its brands in a variety of consumer categories to retailers, wholesalers and distributors in the United States and around the world. For more information, please visit Sequential’s website at: www.sequentialbrandsgroup.com. To inquire about licensing opportunities, please email: newbusiness@sbg-ny.com.
ABOUT GLOBAL BRANDS
Global Brands Group Holding Limited (SEHK Stock Code:787) is one of the world’s leading branded apparel, footwear, fashion accessories and related lifestyle product companies. The Group designs, develops, markets and sells products under a diverse array of controlled and licensed brands and a wide range of product categories. Global Brands’ innovative design capabilities, strong brand management focus, and strategic vision enable it to create new opportunities, product categories and market expansion for brands on a global scale. For more information, please visit the corporate website: www.globalbrandsgroup.com.
