Sequential Brands Group is selling the Martha Stewart and Emeril Lagasse brands for nearly $200 million less than it paid four years ago. Sequential announced April 16 it has signed a definitive agreement to sell the brands to Marquee Brands LCC for an estimated $175 million and the earnout opportunity of up to an additional $40 million. Sequential acquired the brands in 2015 for roughly $353 million. Marquee owns and manages a portfolio of fashion and active lifestyle brands that include BCBG Maxazaria, BCBG Generation, Ben Sherman, Body Glove, Bruno Magli and Dakline. "This transaction allows Sequential to make meaningful progress in de-levering our balance sheet, which is a top priority," said Karen Murray, CEO of Sequential Brands Group. Sequential said it plans to use a substantial portion of the proceeds from the transaction to pay down debt. The transaction is expected to close in the second quarter. During last month's fourth quarter analyst call, Sequential said that while home was its largest business, activewear is its fastest growing. The Martha Stewart brand is also embarking on a new multi-category product launch designed to distribute merchandise beyond the current roster of retailer exclusives. Just prior to the sale announcement, Sequential was steadily expanding both the Martha and Emeril brands. In addition to the recent Martha Stewart deal with hemp and CBD producer Canopy Growth - which will launch with pet goods then move into products for humans - the Stewart brand at QVC is adding seasonal decor for multiple holidays this year.
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