The action sports market saw several mergers and acquisitions last week, though none were tremendous blockbuster deals.
Podium Distribution, who handles design, marketing, and distribution for DVS Shoe Company, Matix Clothing, and Lakai Limited Footwear, will merge with Fresh Distribution after working with the company for the past ten years. Through the merger, Podium hopes to continue to strengthen and build its brands in Germany and Italy. The infrastructure and staff of Fresh Distribution will remain the same with Ralf Fischer as managing director.
Iconix Brand Group Inc. first made its name heard on the fringe of the action set when it announced its intent to acquire Mossimo, Inc. in mid-April. While that deal finally closed last week, the company announced a new acquisition on the horizon, this time entering into a definitive agreement to acquire the Ocean Pacific brand from The Warnaco Group, Inc. for approximately $54 million. As part of the transaction, Warnaco will be granted a license from Iconix to continue to manufacture and sell women's and junior swimwear. Pursuant to the purchase agreement, Warnaco will be paid $10 million in cash at closing, which is anticipated to be in November, with the remainder of the purchase price in the form of a short term note from Iconix.
Finally, HO Sports has purchased the assets of Portland-based Wakekite Sports, Inc. The company intends to continue marketing Wakekite product under its present Wakekite product identification. A mix of kite boarding and wake boarding, the new sport of “wakekiting” couples a boat and wakeboarder/water-skier with an inflatable, towable kite. Wakekite is expected to launch in Spring 2007.
