Sequential to Spend Millions on Major Yoga Brand

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Photo: courtesy of Sequential
Photo: courtesy of Sequential

Sequential Brands Group, Inc. is tightening its grip on the active lifestyle market.

The New York-based company announced Tuesday that it had agreed to acquire the branded consumer product business from Gaiam, Inc. for around $146 million in cash.

As part of the transaction, Sequential will gain Gaiam’s yoga, fitness and wellness product business, which includes the Gaiam and Spri brands, currently distributed through Amazon, Kohl’s and Target, among others.

In tandem with the acquisition, the brand management firm signed long-term licensing agreements for core categories, which will become effective upon closing. Fit for Life will be the licensing partner for the hard goods and equipment categories as well as the digital properties, while High Life will produce yoga and athleisure apparel.

Yehuda Shmidman, chief executive officer of Sequential, described the deal as “a home run.” “The acquisition is immediately accretive to earnings and aligns with our long-term playbook of acquiring brands with significant, untapped potential where we can immediately unlock value and position them for long-term organic growth,” he said.

Eddie Esses, president of the company’s active division, continued, “Studies show that over 35 million people in the U.S. practice yoga today, up 76 percent in the past four years, and another 80 million aspire to practice yoga. By acquiring one of the leading brands in yoga, fitness and wellness, the opportunities are vast as we think about gaining market share, adding new distribution and expanding globally.”

“We are confident that Sequential is the right company to further our mission and continue growing these dynamic brands by providing increased resources, market expertise and a strong network of affiliates and distribution relationship that will help to drive increased sales and profitability,” Lynn Powers, chief executive officer of Gaiam, said during a conference call, adding that she and a number of other employees will join Fit for Life.

She added, “The combination of Gaiam’s innovative products and authenticity in the active lifestyle space, coupled with Sequential’s extensive retail relationships and strategic approach to brand building sets the stage for taking both the brands to new levels.”

The transaction is expected to close within 60 days.

Last week, Sequential posted a net loss of $1.1 million in the first quarter, compared to a profit of $1.4 million in the same period a year ago, and said it expects revenues in the range of $150 million for the remainder of 2016. Following Tuesday’s announcement, the company raised its fiscal year outlook to guide revenues between $172 million and $177 million.


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