-- Acquisition to build on Galaxy's successful vertical integration strategy 

Today Galaxy Universal, LLC ("Galaxy" or the "Company"), a portfolio company of 
Gainline Capital Partners ("Gainline"), announced that it has agreed to acquire 
the And1, Avia, Gaiam and SPRI brands (together the "Active Brands") from 
Sequential Brands Group, Inc. ("Sequential") for approximately $330 million. 
The transaction is subject to the satisfaction or waiver of customary closing 
conditions, including court approval and is expected to close by mid-November 
2021.

This transaction is a continuation of Galaxy's strategy to vertically integrate 
strong brands under one management operation that controls marketing, design, 
sales, sourcing and manufacturing. This unique platform will create 
efficiencies to deliver high quality athletic, work and outdoor products at the 
best possible value to its customers.

Galaxy is led by CEO Eddie Esses, a footwear and brand management industry 
veteran. "In this everchanging marketplace, we are strategically positioned to 
deliver on the customers' constantly evolving expectations. Galaxy is able to 
provide great brands, unique designs and upgraded quality at exceptional 
values," Esses said. 

Galaxy is rapidly expanding, continuing to build on its vertical platform. This 
spring, the Company completed the acquisition of Apex Global Brands including, 
Hi-Tec, Magnum and Tony Hawk. It also has licensing deals with top brands such 
as Justice, London Fog and many others.

Allan Weinstein, Managing Partner of Gainline, said, "The rich heritage of 
these brands combined with the passion, experience and unrivaled track record 
of Mr. Esses and his team distinguishes this investment. We are thrilled to 
support this team and advance the Galaxy partnership as the company expands and 
future acquisition opportunities present themselves."

KKR led the debt financing for the acquisition and will participate as a 
co-investor. "Galaxy's vertical integration strategy and strong specialization 
in active products positions the company to take these great brands to new 
heights," said Lauren Krueger, Managing Director at KKR. "We are excited to 
finance the deal and invest in the future of the company as a strategic partner 
with the Galaxy and Gainline teams."

KKR is making its investment in Galaxy through certain private credit managed 
accounts.

Houlihan Lokey Inc acted as exclusive financial advisor and Willkie Farr & 
Gallagher LLP acted as legal advisors to Galaxy Universal LLC. Credit Suisse 
Securities (USA) LLC acted as exclusive placement agent to Gainline Capital 
Partners. Province acted as financial advisor and King & Spalding LLP acted as 
legal advisors to KKR. Stifel and its affiliate Miller Buckfire acted as 
financial advisors and Gibson, Dunn & Crutcher LLP acted as legal advisors to 
Sequential Brands Group.

About Galaxy
Headquartered in New York, NY, Galaxy Universal LLC is a global vertically 
integrated marketing, design, sales, sourcing and manufacturing company that 
specializes in the athletic, health and wellness, outdoor and work categories. 
Owned brands include And1, Avia Cherokee, Gaiam, Hi-Tec, Interceptor, Magnum, 
SPRI, Tony Hawk and more. The Company is a licensee of the Justice and London 
Fog brands, among others. With a worldwide distribution network, Galaxy sells 
branded athletic and work footwear in over 40,000 stores. 

About Gainline Capital Partners
Gainline Capital Partners is a private equity firm that invests in profitable, 
U.S.-based middle market companies. The firm focuses on being the first 
institutional capital and specializes in partnering with management teams to 
help execute their vision, drive sustainable growth and create long term value. 
www.gainlinecapital.com 

About KKR
KKR is a leading global investment firm that offers alternative asset 
management and capital markets and insurance solutions. KKR aims to generate 
attractive investment returns by following a patient and disciplined investment 
approach, employing world-class people, and supporting growth in its portfolio 
companies and communities. KKR sponsors investment funds that invest in private 
equity, credit and real assets and has strategic partners that manage hedge 
funds. KKR's insurance subsidiaries offer retirement, life and reinsurance 
products under the management of The Global Atlantic Financial Group. 
References to KKR's investments may include the activities of its sponsored 
funds and insurance subsidiaries. For additional information about KKR & Co. 
Inc. (NYSE: KKR), please visit KKR's website at www.kkr.com and on Twitter 
@KKR_Co.

SOURCE Gainline Capital

CONTACT: Media Contact: Lisa Schein, lschein@galaxycorp.com