Cramer Products, Inc. has acquired Stromgren Athletics in a deal that provides the maker of sports medicine and physical education products a pathway into protective apparel product and compression apparel. The deal is expected to increase Cramer revenues by approximately 15 percent. Terms of the deal were not disclosed.
Cramer Products, based in Gradner, KS, has been primarily focused on sports medicine products like braces, tapes and supports, while Stromgren, which is based in Hay, KS, is more protective gear and some sports medicine, according to comments by Cramer President and CEO Tom Rogge in an exclusive interview with Sports Executive Weekly.
Rogge told SEW that there are no immediate plans to consolidate operations. He said the companies will continue to run separately. Steve Arensdorf, COO at Stromgren, will continue in that role and report to Rogge.
Rogge said they saw opportunities in the Stromgren deal due to the brands penetration in the team dealer market and the new realities of the sports med market. He went on to say the primary reason for the deal was building revenue through the team dealer business.
The sports med market has moved away from the team dealer market and has moved more toward medical suppliers, said Rogge. Trainers see themselves more as true health care professionals and increasingly purchase athletic training supplies from medical suppliers. Still, the CEO said sporting goods retail is currently Cramers fastest-growing business, with expanded programs at Dicks Sporting Goods, Sports Authority and many others. Rogge said he sees opportunities for Stromgren at the retail level as well.
Both companies have a domestic production capability, with both manufacturing product in Kansas. Stromgren produces about 20 percent of their product domestically, primarily quick turn goods, but also as a hedge against lower inventory levels in compression product, girdles and other protective goods. Cramer produces about 35 percent of its product in its facility in Hays.
Stromgren has 20 employees and will maintain its current sales organization.
Cramer Products, with 16 employees currently, was founded in 1918, and the company is celebrating its 93rd year in 2011. Its first product was an athletic liniment created by pharmacy student Chuck Cramer to soothe his sore ankle. He and his brother, Frank, began selling the product to local athletic teams.
In the early 1980s, Cramer expanded its product lines to include physical education equipment, and in 2004, acquired Cosom Sporting Goods to further increase its line of physical education products. In 2008, Cramer acquired Active Ankle Systems, Inc., a worldwide leader in the development of high-value, high function ankle and foot products, continuing Cramers commitment to developing products that heal, protect and help prevent injury.
