DALLAS and LOS ANGELES, Dec. 10, 2012 (GLOBE NEWSWIRE) -- Heelys, Inc. (the "Company" or "Heelys") (Nasdaq:HLYS) and Sequential Brands Group, Inc. ("Sequential") (OTCBB:SQBG) announced today they have entered into an agreement and plan of merger dated December 7, 2012 (the "Merger Agreement"), pursuant to which Sequential will acquire all of the outstanding shares of common stock of Heelys for $2.25 per share in cash, or approximately $63.2 million (the "Sequential Transaction"). Heelys also announced that, before entering into the Merger Agreement with Sequential, the Company's board of directors (the "Board") unanimously determined that the Merger Agreement constitutes a "superior proposal" under the terms and provisions of the Company's previously-announced asset purchase agreement dated October 22, 2012 among The Evergreen Group Ventures, LLC ("Evergreen"), the Company and its subsidiaries (the "Evergreen Purchase Agreement"). Heelys has terminated the Evergreen Purchase Agreement, and the Company has agreed to pay Evergreen a termination fee, which, pursuant to the Merger Agreement, will be reimbursed by Sequential. "The Sequential transaction represents an attractive outcome and is in the best interest of Heelys stockholders," said Tom Hansen, Heelys President and CEO. "Their all-cash offer provides our stockholders with a fixed cash value and eliminates the need to proceed with the previously announced Plan of Dissolution." Yehuda Shmidman, CEO of Sequential, commented, "We are excited to be adding the Heelys brand to our portfolio. Heelys is recognized globally as a pioneer of skate shoes, and with its brand DNA rooted in innovation and skate, we see the potential for expansion in the future as a global lifestyle brand." Mr. Shmidman added, "Fitting with Sequential's brand-management business model, we have identified our long-term worldwide licensing partner for the core category of footwear, and will announce the partner and the team managing the Heelys brand shortly." Tengram Capital Partners advised Sequential on the transaction. William Sweedler, Managing Partner of Tengram and Chairman of Sequential, stated, "The Sequential model is simple: find great brands and marry them with equally great operating licensees to build on their core DNA. The acquisition of Heelys represents the second transaction completed by Sequential Brands Group since Tengram's involvement with the company began earlier this year, and we are excited about the pipeline of opportunities to add more brands to Sequential's portfolio in the future."