Sequential Brands Group, Inc. (OTC: SQBG) announced today that it has completed the merger of Heelys, Inc. with and into a subsidiary of Sequential. The Company entered into an agreement and plan of merger dated December 7, 2012 to acquire Heelys subject to certain terms and conditions that have since been fulfilled, and the approval by the Heelys stockholders which was confirmed on January 24, 2013.

Sequential acquired all of the outstanding shares of common stock of Heelys for $2.25 per share in cash, or approximately $63 million. On closing, Heelys had approximately $57.5 million in cash. The balance of the purchase price was funded with cash from Sequential.

Simultaneous with the closing, the previously announced global license agreement with BBC International LLC ("BBC") became effective, making BBC the exclusive licensee for Heelys footwear. BBC is a leading global kids footwear organization with other prominent footwear licenses, including Polo Ralph Lauren, Warner Brothers and Marvel.

Yehuda Shmidman, CEO of Sequential, and Bobby Campbell, BBC's Founder and Managing Member, jointly stated, "We see many opportunities to leverage Heelys' compelling brand heritage and patented products as we re-launch the Heelys brand with our retail partners around the world."

Founded in 1999, Heelys has been a breakout success in the world of action sports among children and teens with its innovative wheeled footwear. Heelys' core product, HEELYS-wheeled footwear, is patented dual purpose footwear that incorporates a stealth, removable wheel in the heel.