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Sequential buys 1 billion Jessica Simpson brand

By Angela Gonzalez-Rodriguez


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Sequential Brands Group, Inc. (Nasdaq:SQBG) announced Wednesday that it has closed the acquisition of the Jessica Simpson brand. The Company has acquired a majority interest in the brand, including the Jessica Simpson Collection master license and other rights.

"Jessica Simpson is an entertainment and style icon who successfully built an incredibly strong fashion brand with best-in-class licensees and leading retail partners," said Yehuda Shmidman, chief executive officer of Sequential. "Sequential is thrilled to partner with Jessica, her team and all the brand's licensing partners, including Camuto Group for footwear."

Similarly, the eponymous celebrity said that "I am extremely honored to partner with Sequential Brands Group to continue the growth and integrity of the Jessica Simpson Collection."

Financing for the acquisition was provided by Bank of America and GSO Capital Partners LP, an affiliate of Blackstone Group.

Sequential has in excess of 250 million dollars of aggregate contractual guaranteed minimum royalties under its existing licenses as of the close of this transaction.

For the Fiscal Year 2015, the group is increasing projected revenue to 78.0 – 81.0 million dollars and increasing projected Adjusted EBITDA to 48.5 - 50.5 million dollars.

Looking ahead, the company is projecting forward 12-month royalty revenues of 88.0 - 90.0 million dollars and 53.5 - 55.0 million dollars of Adjusted EBITDA from the retailer's total brand portfolio.

Jessica Simpson “after the first billion” with majority stake sale to Sequential

"Working together with the powerful management team at Sequential and with all of our trusted retailers and licensees, including Camuto Group, there is no limit to our success. I'm as committed as I was 10 years ago. Here's to the next billion," happily stated the celebrity, commenting the deal.

Founded in 2005, the Jessica Simpson Collection is a signature lifestyle concept inspired by and designed in collaboration with Jessica Simpson. The brand offers 31 product categories including footwear, apparel, fragrance, fashion accessories, maternity apparel, girls clothing and a home line.

The brand is supported by strong licensees and has a solid department store distribution through Dillard's, Macy's, Belk, Lord & Taylor and Nordstrom, among other independent retailers. Annual retail sales for the brand are approximately 1 billion dollar, reports ‘MarketWatch’.

"Sequential Brands Group, Inc. was a big mover last session, as the company saw its shares surge over 12 percent on the day," said Zacks Equity. "This rally higher can be attributable to the news of the company purchasing a majority stake in celebrity Jessica Simpson's brand."

Jessica Simpson