Gaiam Consummates Sale of Its Entertainment Media Distribution Business for $51.5 Million Plus NWC Adjustment
Gaiam, Inc. (NASDAQ: GAIA) (“the Company”), a lifestyle media company, today announced that it has consummated the previously announced sale of its non-Gaiam branded entertainment media distribution business (“GVE”) to Cinedigm Corp. (NASDAQ: CIDM) for $51.5 million, plus an adjustment for closing net working capital that is expected to total approximately $5 million to $7 million in additional cash consideration.
Gaiam is now focused on the Company’s branded health and wellness business, including Gaiam branded fitness media content and products, which have a presence in over 40,000 retail doors, as well as the Company’s branded e-commerce platform, and on Gaiam TV, the Company’s streaming video subscription business. Gaiam TV currently provides over 5,000 exclusive video titles, including films, documentaries and original programming dedicated to conscious media, personal growth, and spirituality, and has the world’s largest online library of yoga, fitness, and wellness videos. Gaiam continues to be the leader in U.S. health and wellness media with an approximate 40% market share over the twelve month period ended September 30, 2013.
Lynn Powers, Chief Executive Officer of Gaiam, commented, “We wish our GVE colleagues all the best as they join the Cinedigm team, and we thank them for all of the value and contributions they brought to Gaiam. Looking ahead, we expect to leverage our strengthened balance sheet, financial flexibility and targeted business focus to achieve growth both organically and through acquisitions in our core operations.”
Berenson & Company served as a financial advisor to Gaiam in connection with the transaction.
The Company will provide more detail about this transaction during its 2013 third quarter earnings release call scheduled for November 7, 2013 at 4:30 p.m. ET.