Benzinga | Jan 21, 2022 05:12AM EST

Digital Brands Acquires Women's Lifestyle Apparel Brand Sundry

* Digital Brands Group Inc (NASDAQ: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.