Caifornia-based Apex Global Brands Inc., a global brand management and licensing organization previously called Cherokee Global Brands and the parent company of the Hi-Tec, Magnum and Tony Hawk brands, amongst others, confirmed that it has entered into a merger agreement with Galaxy Universal LLC, a Colorado-based project management and investment firm. The closing of the acquisition is expected to occur in the second quarter of 2021.

“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. “We believe that the sale process will be seamless for our licensees and that there will be no disruption to our operations.” Most recently, lower licensee sales due to the pandemic and the non-renewal of certain Cherokee brand licensing deals weighed on the revenues of Apex.

Under the terms of the agreement, which has been unanimously approved by the members of the Apex board of directors, Galaxy Universal will acquire all of the outstanding shares of Apex for US$2.00 per share in cash.

A special meeting of Apex Global Brands stockholders will be held as soon as practicable following the filing of a definitive proxy statement with the U.S Securities and Exchange Commission (SEC) and subsequent mailing to stockholders. 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.