Galaxy Universal, a portfolio company of Gainline Capital Partners, agreed to acquire the And1, Avia, Gaiam and SPRI brands from Sequential Brands Group for approximately $330 million. KKR led the debt financing for the acquisition and will participate as a co-investor. KKR is also making an investment in Galaxy through certain private credit managed accounts.

The transaction is subject to the satisfaction or waiver of customary closing conditions, including court approval and is expected to close by mid-November.

This transaction is a continuation of Galaxy’s strategy to vertically integrate brands under one management operation that controls marketing, design, sales, sourcing and manufacturing. This platform will create efficiencies to deliver athletic, work and outdoor products.

“In this everchanging marketplace, we are strategically positioned to deliver on the customers’ constantly evolving expectations. Galaxy is able to provide great brands, unique designs and upgraded quality at exceptional values,” Eddie Esses, CEO of Galaxy Universal, said.

Galaxy is expanding and continuing to build on its vertical platform. This spring, the company completed the acquisition of Apex Global Brands, including, Hi-Tec, Magnum and Tony Hawk. It also has licensing deals with brands such as Justice and London Fog.

“The rich heritage of these brands combined with the passion, experience and unrivaled track record of Mr. Esses and his team distinguishes this investment,” Allan Weinstein, managing partner of Gainline Capital Partners, said. “We are thrilled to support this team and advance the Galaxy partnership as the company expands and future acquisition opportunities present themselves.”

“Galaxy’s vertical integration strategy and strong specialization in active products positions the company to take these great brands to new heights,” Lauren Krueger, managing director at KKR, said. “We are excited to finance the deal and invest in the future of the company as a strategic partner with the Galaxy and Gainline teams.”

Houlihan Lokey acted as exclusive financial advisor and Willkie Farr & Gallagher acted as legal advisors to Galaxy Universal. Credit Suisse Securities acted as exclusive placement agent to Gainline Capital Partners. Province acted as financial advisor and King & Spalding acted as legal advisor to KKR. Stifel and its affiliate, Miller Buckfire, acted as financial advisors and Gibson, Dunn & Crutcher were legal advisors to Sequential Brands.