fbpx
QQQ
-2.71
348.05
-0.78%
DIA
-5.86
344.51
-1.73%
SPY
-7.07
429.04
-1.68%
TLT
+ 2.69
140.35
+ 1.88%
GLD
-0.87
166.72
-0.52%

Analyst: Sequential Brands Group To Double 3-Year Outlook

by
June 22, 2015 2:59 pm
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More

Sequential Brands Group Inc (NASDAQ: SQBG) will see its dreams come true for $100 million in annual revenue, through its pending acquisition of Martha Stewart Living Omnimedia, Inc. (NYSE: MSO), an analyst said Monday.

Wunderlich’s Eric Beder reaffirmed his Buy rating and $18 target on Sequential Brands after the company agreed to acquire Martha Stewart for $6.15 a share in cash and stock.

New York-based Sequential last year posted revenue of $41.8 million from brands including Linens N Things, the Franklin Mint and And 1.

Sequential traded recently at $16.92, down $0.08 cents, although the shares are up nearly 30 percent in the year to date.

Beder said he’ll boost his target on Sequential after completion of the Stewart deal, which he said will position the company as “the leading growth player in the licensing industry.”

Sequential will add between $0.25 cents and $0.40 cents a share to its earnings with the acquisition, according to Beder, who expects the company will soon double its three-year earnings outlook.

The deal’s total value to Stewart shareholders would be just under $200 million for Stewart’s 32.4 million shares outstanding.

Stewart shareholders are to get half the consideration in cash and half in shares, with the cash portion financed with funds from an affiliate of Blackstone Group.

Sequential last year paid $260.3 million to acquire Galaxy Brand Holdings Inc. including a cash component reported at $100 million.

http://www.accessoriesmagazine.com/98843/sequential-brands-acquire-galaxy-brand-260-3-million#.VYhJ6hNViko

Galaxy’s acquisition was financed by Sequential with a term loan of up to $75 million and a revolving credit facility of up to $25 million.

https://www.sec.gov/Archives/edgar/data/791770/000114420415016366/v403476_10k.htm#a_002

Beder reportedly said at the time that the Galaxy deal “firmly establishes the company as a major player in the brand licensing sector.”

For the latest in financial news, exclusive stories, memes follow Benzinga on Twitter, Facebook & Instagram. For the best interviews, stock market talk & videos, subscribe to our YouTube channel.


Related Articles

Roth Capital's Dave King Calls Sequential's Deal for Martha Stewart 'Significant,' Believes It's 'Another Transformative Acquisition,' Price Target Raised from $16 to $20, Buy Maintained

Brean's Liz Pierce Believes the Purchase of Martha Stewart is 'Great Addition' to Sequential Brands Portfolio; Reiterates Buy on SQBG, Raises Price Target from $17 to $21

Daily Movers: Williams Companies, Cigna Corp Declines Billions; Ambarella, GoPro Sinking

Wunderlich Says Sequential Brands Purchase Of Martha Stewart 'catapults Sequential firmly to the next level in the licensing space', Reiterates Buy & $18 PT