Gainline Capital Partners Announces Acquisition of Galaxy Universal LLC

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May 06, 2021, 12:40 ET

STAMFORD, Conn., May 6, 2021 /PRNewswire/ -- Gainline Capital Partners ("Gainline"), announced that it has formed Galaxy Universal LLC ("Galaxy" or the "Company"), which aspires to be the leading independent brand owner, producer, sourcing company and brand consultant in the sports and outdoors industry.

On December 29, 2020, Galaxy acquired the ESO Active Division ("Galaxy Active") from E.S. Originals, Inc. in a carve out transaction. Galaxy Active is one of the leading privately held importers and wholesalers of athletic and outdoor footwear in the United States. Galaxy Active licenses the brands AND1, Avia, London Fog and Justice, among others.

On April 1, 2020, Galaxy acquired Apex Global Brands, Inc. ("Apex", OTCPK: APEX) in an all-cash transaction. Apex brands include Hi-Tec^®, Magnum^®, Interceptor^®, Cherokee^® and Tony Hawk^®, among others. Apex holds license agreements with leading retailers and manufacturers that span over 140 countries and 20,000 retail locations, in addition to digital commerce.

Galaxy's management team is led by Eddie Esses. Mr. Esses shared, "We are excited to execute on our long-term vision of creating a global leader in the active industry. With many growth opportunities ahead, we are thrilled to partner with Gainline, whose strong track record investing in and growing consumer brands will be invaluable to our success."

Allan Weinstein, Managing Partner of Gainline, said, "Macro trends in health and wellness have driven the consumer toward a more active lifestyle, creating a robust long-term opportunity for well established brands in the sports and outdoor industry. With a diverse portfolio of brands across athletic, outdoor and work categories, as well as sophisticated domain expertise in design and manufacturing and longstanding customer relationships, Galaxy is uniquely positioned to capitalize on significant industry tailwinds. We look forward to partnering with Eddie Esses and the Galaxy management team in achieving their growth objectives."

Harry Clouston, Vice President at Gainline, added, "We see tremendous whitespace in the industry, and Galaxy is well positioned to pursue a rich pipeline of identified organic and acquisition opportunities in the branded athletic and outdoor space."

Capital Dynamics Private Credit supports the Galaxy platform and served as the lead arranger for the transactions. Capital Dynamics has been investing in the lower-middle market for over 25 years as a provider of tailored financing solutions to private equity-backed companies to support leveraged buyouts, acquisitions, growth initiatives, re-financings and more.

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 Galaxy
Headquartered in New York, NY, Galaxy Universal LLC is a wholesale, sourcing and brand management company, focusing on the athletic, work and outdoor categories. Brands owned include Hi-Tec^®, Magnum^®, Interceptor^®, Cherokee^®, Tony Hawk^®, and more. Licensed brands include AND1, Avia, London Fog and Justice, among others. The Company also provides brand management services to the Gaiam, SPRI and Swisstech marks. The Company has a 50+ year history of successfully providing branded athletic and work footwear to retail and digital commerce channels. www.galaxycorp.com

SOURCE Gainline Capital Partners