Jessica Simpson Brand Acquired by Sequential Brands Group

Sequential Brands Group Inc. has closed the acquisition of the Jessica Simpson brand. The company has purchased a majority interest in the brand, including the Jessica Simpson Collection master license and other rights. The company projects 12-month royalty revenues between $88 million and $90 million, and $53 million to $55 million of adjusted earnings before interest, taxes, depreciation and amortization from its total brand portfolio. Annual retail sales for Jessica Simpson are about $1 billion. Simpson markets 31 product categories ranging from footwear and apparel to fashion accessories, fragrance, girls clothing and a home line. The lines are distributed through such department stores as Macy’s, Belk, Dillard’s, Lord & Taylor and Nordstrom. Financing for the acquisition was provided by Bank of America and GSO Capital Partners LP, an affiliate of Blackstone Group. The company has in excess of $250 million of aggregate contractual guaranteed minimum royalties under its existing licenses as of the close of this transaction. For the fiscal year 2015, Sequential is increasing projected revenue to $78 million to $81 million and boosting projected adjusted EBITDA to $48 million to $50.5 million. Besides Simpson, Sequential’s brands include And 1, Avia, footwear brand Nevados, Linens-N-Things, Ellen Tracy, Revo, Caribbean Joe, William Rast, The

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