Gaiam, Inc. on Monday sold an entertainment distribution business for nearly $60 million in cash, which the company said it will invest in its core business of making and distributing health and wellness videos and products, including accessories for yoga and other fitness activities.
The Boulder, CO-based company sold Gaiam Vivendi Entertainment, or GVE, to Cinedigm Corp. for $51.5 million in cash plus an adjustment for closing net working capital that is expected to reach between $5 million to $7 million in additional cash. The business includes a library of thousands of home entertainment videos, including many which Gaiam acquired for $13 million from Vivdendi International in the first quarter of 2012.
Gaiam will use proceeds from the sale to fully pay down $10 million in borrowings under an existing credit facility and fund the expansion of its core health and wellness business through both organic initiatives and acquisitions. The Boulder, CO-based company’s videos and fitness products are sold in over 40,000 retail doors, as well as online through its own branded e-commerce platform and Gaiam TV, a streaming video subscription business. Gaiam TV currently provides more than 5,000 exclusive video titles, including the world’s largest online library of yoga, fitness, and wellness videos. The company reported pro-forma revenues increased 22 percent to $202.5 million in 2012 after it divested a solar energy business and acquired the assets of Vivendi Entertainment to create GVE.
