New Era Cap Co., Inc. has signed a partnership agreement with Asia’s Mainland Headwear Holdings Ltd. to service its growing demand in Europe and other international markets as well as gain entry into the expanding Chinese market where Mainland already has a strong retail presence. Mainland Headwear produces headwear under license for Timberland, Warner Brothers, NCAA, NASCAR and Titleist.

As part of the seven-year agreement, Mainland Headwear will manufacture and produce headwear for New Era Cap. Mainland will also grant New Era an option to purchase 5% of the common stock of Mainland and an additional 15% during the first two years of the agreement.


“As our global economy expands and new markets emerge, New Era will continue to identify new opportunities for growth,” said Christopher H. Koch, CEO at New Era. “We believe this partnership is mutually beneficial to both companies and will provide New Era access to lucrative Asian retail markets and potentially millions of new and enthusiastic customers.”

 

“We are extremely pleased to establish a long-term partnership with New Era, the global leader in the headwear and sports apparel market, as well as a major retail supplier in its own right,” said Ngan Hei Keung, chairman of Mainland Headwear Holdings Limited, “This agreement represents a substantial and stable source of revenue for our group and holds the potential for retail collaborations for both our companies.

 

Along with the new business opportunities, New Era said this unique partnership provides the company with:

    * Greater oversight over manufacturing and distribution: Mainland Headwear is a widely respected company with a reputation for quality craftsmanship, fairness and honesty. This partnership will help ensure that New Era products are made to its high standards and distributed properly in the global market.


    * Enhanced ability to monitor labor conditions: As a participating member of the Fair Labor Association, Mainland Headwear will act in partnership with New Era to ensure that its workers receive a fair living wage and that their work environment meets all safety and international standards.


    * The ability for New Era to recoup the loss of production capacity resulting from the company’s recent decision to stop business with another Chinese supplier.