08 Jul Gaiam Sells Consumer Products to Sequential Brands for $167 Million
Gaiam, Inc. completed the sale of its branded consumer product business to Sequential Brands Group, Inc. and its operating partner Fit For Life LLC for a gross consideration of $167 million, subject to closing costs and standard post-closing adjustments, including net working capital.
In connection with the closing, Gaiam will change its corporate name to Gaia, Inc. and will continue to trade on the NASDAQ under its current ticker “GAIA.”
After the closing, Gaiam’s business will consist of the Gaia subscription service, formerly known as Gaiam TV. Gaia is a global streaming video service and online community delivering curated, commercial-free, conscious media to subscribers across the world.
More than 90 percent of the company’s 7,000 titles are exclusively available for streaming on Gaia through most devices connected to the Internet. 80 percent of subscriber views across 120 countries are generated by content produced or owned by Gaia.
Gaiam expects to use certain of the proceeds from the sale to fund its issuer tender offer, described in more detail below. The remaining proceeds will be used to fund the continuing growth and development of Gaia, as well as general corporate purposes.
“Completing this transaction is the final step on our path to focus on a subscription video streaming service dedicated to conscious media, following dispositions of our solar energy, DVD and eco-travel businesses,” said Jirka Rysavy, Gaia Chairman and CEO. “We look forward to leveraging our strong balance sheet to enhance subscriber growth across the globe, while developing new content categories to guide our users’ conscious lives.”
Lynn Powers, former CEO of GAIAM, commented, “We would like to thank all of our employees and partners for their work in driving our vision to make yoga, fitness and wellness accessible to everyone. We are proud of the reputation the GAIAM brand has built around these healthy living markets, and I’m also confident in Sequential Brands, High Life and Fit For Life’s ability to further advance this vision.”