Why Sequential Brands (SQBG) Stock Is Surging Today

NEW YORK (TheStreet) -- Shares of Sequential Brands Group Inc.  (SQBG) are surging 19.13% to $13.89 after it announced making a bid for privately held Galaxy Brand Holdings, the owner of Linens 'N Things, in a cash and stock deal valued at approximately $260.3 million.

The Carlyle Group is the majority owner of Galaxy Brand, and aside from Linens 'N Things stores, the deal would give Sequential Brands Group access to the fitness brand Avia, basketball brand AND1 and outdoor brand Nevados.

Separately, Brean Capital today raised its price target on Sequential Brands to $15 from $10 and maintained its "buy" rating, citing the acquisition

Must Read: Warren Buffett's 25 Favorite Stocks

SQBG Chart

SQBG data by YCharts

More from Markets

Jim Cramer on the Problem With the Case for More Rate Hikes

Jim Cramer on the Problem With the Case for More Rate Hikes

Video: Jim Cramer on Fed Rate Hikes, Oil Prices and Starbucks Worries

Video: Jim Cramer on Fed Rate Hikes, Oil Prices and Starbucks Worries

'Strong Case for More Rate Hikes,' Says Fed Chair Jerome Powell

'Strong Case for More Rate Hikes,' Says Fed Chair Jerome Powell

Fed Chief Uncertain About Policy-Making as Unemployment Hits 18-Year Low

Fed Chief Uncertain About Policy-Making as Unemployment Hits 18-Year Low

Boeing Rises on $6.6 Billion Deal With FedEx

Boeing Rises on $6.6 Billion Deal With FedEx