Sequential Brands Group Inc. announced that it has closed on the sale of its Heelys brand to BBC International for $11 million in cash proceeds.
BBC had been licensing the Heelys’ brand from Sequential Brands since 2013. The partnership came soon after Sequential Brands acquired the roller shoe label for $63.2 million. BBC, based in Boca Raton, FL, also manufactures footwear for brands including Polo Ralph Lauren, Tommy Hilfiger, Michael Kors, K-Swiss, Champion, and Marvel.
Last December, Sequential Brands announced the relaunch of a broad review of strategic alternatives, including the divestiture of one or more existing brands or a sale of the company, and seeks an extension of waivers to cover financial covenant defaults.
“The divestiture of the Heelys brand was an outcome of the Board’s exploration of strategic alternatives, a process that is still underway,” said William Sweedler, executive chairman of Sequential. “The Heelys brand was originally acquired in 2013 for a net purchase price of approximately $5.5 million (after accounting for cash on the Heelys balance sheet that we received at the time of the 2013 purchase). BBC International has been the core licensee of Heelys since 2013. We believe the brand is in great hands under BBC’s leadership going forward.”
The majority of the net proceeds from the sale will be used to pay down debt.
Sequential Brands’ active brands include AND1, Gaiam, SPRI, and Avia. Other brands owned by Sequential Brands include Joe’s, Ellen Tracy, Jessica Simpson, William Rast, Caribbean Joe, DVS, and The Franklin Mint.
Photo courtesy Heelys
