Digital Brands Acquires Women's Lifestyle Apparel Brand Sundry

Digital Brands Group Inc DBGI has agreed to acquire Sundry, a privately-owned global lifestyle apparel brand.
Sundry is an omnichannel women's lifestyle apparel brand inspired by Mattieu Leblan's upbringing and ocean lifestyle.
Holders of all of the outstanding membership interests of Sundry will exchange all of such membership interests for $7.5 million of shares of the company's common stock and $34.0 million represented by $20.0 million of cash along with $14.0 million in promissory notes due December 31, 2022.
"In the short term, this acquisition is expected to immediately create significant scale in revenues and internal cash flow for marketing and talent growth," said CEO Hil Davis.
The company expects to close the transaction late in the first half of 2022.
Sundry's founders and senior leadership team will remain with the company, headquartered in Los Angeles, California.
Digital Brands held $0.25 million in cash and equivalents as of September 30, 2021.
Price Action: DBGI shares traded higher by 3.01% at $1.37 on the last check Thursday.