MCG Global, LLC, a middle market private equity firm based in Westport, CT, has acquired Imperial Headwear, Inc., a headwear manufacturer and marketer focused primarily on the sportng goods and golf market, from Arena Brands, Inc. MCG Global led the transaction and the investor group that included value-added co-investors Mercantile Capital and Private Equity Capital Corporation. The purchase price was not disclosed.
Imperial, founded in 1916, derives approximately 75% of its revenues from the golf industry, where its headwear products are sold in 89 of the top 100 golf courses in the United States. Imperial has been a valued partner with both the PGA and USGA for over 15 years. At the 2004 US Open and the 2004 PGA Championship, Imperial was one of two top sellers of headwear. Imperial is one of the major suppliers in the Merchandise Pavilion at the 2004 Ryder Cup Event at Oakland Hills Country Club in Michigan this week. Imperial's headwear will also be a part of the United States team's uniform during the event.
“Imperial's strong brand position and management team attracted the investor team to the company,” said S. Garrett Stonehouse, principal and co-founder of MCG Global, and who will serve as Chairman of the Board at Imperial. “We at MCG Global have long recognized the importance of excellent brands and our firm has had tremendous success applying our Value Creation strategy to medium-sized companies with excellent brand names. Imperial's name has consistently been synonymous with high quality products, unparalleled customer service and dedication to the “green grass” golf distribution channel. Thus, we are excited to partner with its management as we build upon this strong foundation to create growth opportunities for the Company.”
The senior management team, led since 1999 by John Bond, President, will remain with the Company and will also participate as equity holders. “We have a great team at Imperial and it is now even stronger with the addition of MCG Global,” said Mr. Bond. “Our present momentum is very strong thanks to our new performance products, our service dominance and superior sell-rate. We have high expectations and we will be actively targeting new initiatives, all of which will be centered on making the 'Imperial Experience' second to none for our current and future customers.”
“We have great partners at each level of the capital structure and their operating and financial acumen will support the Company's growth initiatives,” said Mr. Stonehouse. “The balance sheet is geared to promote expansion and innovation. In addition to the solid base of business the Company enjoys, Imperial has numerous untapped opportunities that we have already begun to aggressively target.”
Imperial currently has over two hundred employees in Denver, CO, and New York City, fifty-seven manufacturer's representatives, and several international distributors. Imperial sells men's and women's baseball-style caps (including the industry leading X210), visors, bucket hats and straw hats, as well as hat pins and golf club headcovers, to golf clubs and resorts in the United States and the Caribbean, and over twenty countries elsewhere around the world.
