Apex Global Brands, the owner of brands including Hi-Tec, Magnum and Cherokee, has entered into a merger agreement with Galaxy Universal, a wholesaling, sourcing and brand management company.
Galaxy Universal is to acquire all of the outstanding shares of Apex for US$2 per share in an all-cash deal. The closing of the acquisition is expected to occur in the second quarter of 2021.
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“After conducting an extensive analysis of our strategic alternatives with our financial advisor, the board of directors concluded that our sale to Galaxy Universal LLC is the best path to deliver equity to our shareholders,” said Henry Stupp, CEO of Apex Global Brands.
“We believe that the sale process will be seamless for our licensees and that there will be no disruption to our operations.”
The proposed transaction is subject to approval by Apex stockholders, along with the satisfaction of other customary closing conditions. Upon completion of the merger, Apex will become wholly owned by Galaxy Universal LLC.
In its most recent third-quarter financial update, Apex reported a fall in revenue to $4.1m from $4.9m a year earlier. Net loss, however, improved from $6m from a $6.8m loss a year earlier.
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