Rocky Shoes & Boots, Inc. announced it completed the purchase of GATES, other trademarks and intellectual property, customer orders and relationships, as well as certain assets including finished goods and raw materials inventory from Gates-Mills, Inc.
The Company’s incremental net sales are expected to increase more than $8 million during the remainder of 2003 as a result of this transaction. It is expected to have a positive impact on the Company’s earnings this year.
Gates-Mills, established in 1900, is a leading manufacturer and supplier of high quality performance gloves for the Outdoor Hunting, Active/Ski, Specialty, and Dress glove markets in the United States and Canada. These products are produced through sourced manufacturing and are primarily marketed under the tradename GATES.
Mike Brooks, Chairman and Chief Executive Officer, commented, “We are pleased to add the GATES brand to our expanding line of lifestyle product offerings. This is a great fit for our “head-to-toe” strategy, which includes growth initiatives in select markets that complement our position in the outdoor market. Our first year results for the ROCKY branded line of clothing and accessories in 2002 exceeded expectations, and, importantly, generated increased interest in the ROCKY brand.”
Mr. Brooks continued, “This transaction accelerates our expansion plans with a recognized brand known for quality and innovation. It is also expected to result in increased visibility and shelf space for ROCKY and GATES products. While both companies sell-through similar channels there is substantial opportunity to increase customers for both brands. Customers will also be provided with expanded access to a broader line of products through a single supplier. We will be aggressively pursuing growth initiatives with these brands through a comprehensive business strategy executed by John Maser, who joined us last month as Vice President, Apparel Business Development. Bob Gates, great grandson of the founder, and three sales executives have been retained to assist John in these efforts.”