Galaxy Universal Expands Portfolio Through Strategic $330M Acquisition of Athletic and Wellness Brands

Galaxy Universal, a portfolio company of Gainline Capital Partners, has completed an agreement to acquire And1, Avia, Gaiam, and SPRI from Sequential Brands Group for approximately $330 million, marking a significant milestone in the company’s vertical integration growth plan. The acquisition is anticipated to close by mid-November 2021, pending customary closing conditions and court approval.

Strategic Integration and Market Positioning

The deal represents Galaxy Universal’s continued execution of its distinctive business model, which consolidates marketing, design, sales, sourcing, and manufacturing operations under unified management. This consolidated approach enables the company to streamline operations and offer customers premium quality athletic, wellness, and outdoor products at competitive price points.

CEO Eddie Esses, who brings extensive experience in footwear and brand stewardship, outlined the company’s market strategy: “We’re positioned to meet shifting customer demands with thoughtfully designed products and superior quality at exceptional values. Our platform allows us to respond quickly to market trends while maintaining operational excellence.”

Building a Diversified Brand Portfolio

Galaxy Universal’s acquisition activity demonstrates momentum beyond this transaction. Earlier in the year, the company finalized the acquisition of Apex Global Brands, which encompasses Hi-Tec, Magnum, and Tony Hawk brands. Additionally, Galaxy maintains licensing agreements with established names including Justice and London Fog, broadening its market reach across multiple categories.

The company operates a worldwide distribution infrastructure, reaching over 40,000 retail locations globally. This expansion encompasses athletic footwear, work safety products, and wellness merchandise.

Financial Partnership and Investment Confidence

KKR, the global investment firm, provided debt financing for the transaction and simultaneously joined as a co-investor, signaling confidence in Galaxy Universal’s strategic direction. “Galaxy’s integration methodology and specialization in active product categories position the company to elevate these brands significantly,” said Lauren Krueger, Managing Director at KKR. “We see considerable potential in this partnership and are committed to supporting the company’s continued expansion.”

Allan Weinstein, Managing Partner at Gainline Capital Partners, emphasized the investment thesis: “The heritage value of these acquired brands, combined with the operational expertise and track record of the Esses-led team, creates compelling opportunity. We remain committed to supporting Galaxy’s growth trajectory and evaluating future expansion possibilities.”

About the Key Players

Galaxy Universal operates as a vertically integrated platform specializing in athletic, health, wellness, outdoor, and occupational product categories. The company maintains headquarters in New York and manages an extensive portfolio that now includes And1, Avia, Cherokee, Gaiam, Hi-Tec, Interceptor, Magnum, SPRI, Tony Hawk, and additional brands.

Gainline Capital Partners functions as a private equity investor focused on profitable mid-market U.S. companies, partnering with management teams to drive sustainable growth and long-term value creation.

KKR operates as a leading alternative asset management and capital solutions firm, managing investment funds across private equity, credit, and real assets while supporting portfolio company growth initiatives.