Pacific Vector Holdings Inc. continued its roll up of action sports brands last week when it agreed to acquire a controlling interest in the company that owns the Alien Workshop, Habitat and Reflex brands.


Pacific Vector said it will license rights to the brands to its newly formed, wholly-owned subsidiary PVH DNA Inc. Upon the closing, which is scheduled for Oct. 7, DNA LLC will become the holding company for DNA brands, intellectual property, trademarks and property, while PVH DNA will become the operator of the business. In addition to its own brands, which offer skateboarding equipment, softgoods and accessories, DNA LLC also distributes all the leading brands of trucks, safety equipment and grip tape.


Pacific Vector agreed to issue 250,000 stock options and pay $1.5 million in cash via an earn-out agreement to DNA LLC. Under the earn out, PVH DNA will pay 8 percent of DNA branded sales with the first payment due within 12 months of closing. After the $1.5 million is paid out, PVH DNA will pay DNA LLC an ongoing licensing fee of 6 percent of net sales.



Rob Dyrdek, who now hosts a reality television show on cable TV, will continue as minority owner and team rider of DNA LLC, while Alien Workshop co-founders Chris Carter and Mike Hill and Habitat creator Joe Castrucci will remain have moved on to PVH DNA.


Pacific Vector CEO Robert Reynolds said the acquisition of three authentic brands provides Pacific Vector with the foundation it needs to executive its strategy, which revolves around securing exclusive rights to authentic actions sports brands to create a premium retail experience. The company acquired 34 XRyderz and No Fear stores in April and in July licensed the rights to develop and run retail operations the Street League Inc., the first professional street skateboarding league.