Apparel company Apex Global Brands Inc. has entered an agreement to be acquired by Galaxy Universal, a wholesaling, sourcing and brand management company based in Centennial, Colo.

Galaxy, which is privately held and focuses on the athletic, work and outdoor categories, will pay $2 a share for all outstanding shares of Apex, which trades on the over-the-counter market. Shares closed Tuesday at $2.59.

After the acquisition, the Sherman Oaks apparel licensing company will go private as a wholly owned subsidiary of Galaxy.

Apex, formerly named Cherokee Inc., owns and manages a portfolio of clothing and footwear brands including Tony Hawk Signature Apparel, Hi-Tec, Magnum, 50 Peaks, Liz Lange and Cherokee.

Chief Executive Henry Stupp told the Business Journal he’s pleased Galaxy recognized the value of Apex’s brand portfolio.

“We’ve been looking since spring of last year at different strategic alternatives, given the difficulties we had transitioning from former legacy partners,” he said. “It was challenging. It wasn’t the best time. We were under a fair amount of pressure because of our finances.”

Chief Financial Officer Steve Brink said that upon closing, the company’s lenders will be repaid and new financing lines will open.

The transaction is expected to close in the second quarter.