Schutt Sports has acquired football helmet and faceguard assets from Adams USA. The deal will give Schutt a much larger presence in the youth market, while freeing Adams to pursue its other team sports businesses. Financial terms of the transaction were not disclosed.
The purchase consists of only Adams USA’s football helmet and faceguard product lines. All football accessories as well as other sports categories remain with Adams USA. Schutt will assume responsibility for manufacturing the acquired product lines and will continue marketing helmets and faceguards under the Adams brand name.
“We are excited because this acquisition will expand our relationship with the team dealer market and will enhance our lineup, allowing us to offer quality football products to a wider variety of customers,” said Robert Erb, Schutt’s CEO, in a statement.
Speaking to Sports Executive Weekly, Glenn Beckmann, director, marketing communications at Schutt Sports, said the football assets Schutt acquired from Adams USA were direct competitors of the company “in small slices of our key markets, specifically portions of the youth football market.”
He said Schutt management sees the acquisition the Adams USA assets enabling the company to reach dealers it wasnt able to sell to before.
“This expands our market along the youth lines in a meaningful way, as well as increases our reach into the team dealer market,” said Beckmann. “Thats something thats important to us, as we are dedicated to the team dealer channel of distribution. In terms of brand positioning and brand value, the market wont see much change. Well continue to focus both brands on their core customers.”
Beckmann added that the acquisition is the first step put in place by Kranos Corp., its new parent, and Schutt’s leadership team to expand in the sporting goods space both organically and through acquisitions.
“Kranos has made it known in the industry that they are looking for great companies and brands for strategic partnerships and theres no reason to think that this is the final step,” said Beckmann. “But, that growth will be managed smartly and done with long-term stability and growth paramount.”
As reported, Kranos, an affiliate of Platinum Equity LLC, headquartered in Los Angeles, acquired Schutt in a bankruptcy auction in late December. With Schutts TPU Cushioning as well as Aqua Tech Water Graphics being extending this summer from football to baseball as well as the support of Kranos, Schutt continues to enjoy a successful exit from Chapter 11 proceedings.
“Our sales in the first two quarters are strong and it looks as if the third quarter will be strong to very strong for us,” said Beckmann.
For its part, Adams will focus on manufacturing other sports-related equipment.
“We sold our football headgear product lines in order to focus on improving and expanding our offerings in other areas of the sporting goods market,” said Adams USA CEO David Wright in a statement. “Adams has a proud football heritage and we have great confidence in Schutt Sports ability to build on that tradition and move forward with these products.”
