Following the merger of Shock Doctor Sports and McDavid Inc. in April, the entities last week announced they have reorganized under the name United Sports Brands. The combined company is also undergoing a massive restructuring, which includes opening a new facility in Fountain Valley, CA., as it positions itself for growth with existing brands as well as for more acquisitions.
With a portfolio focused on performance and protective sports products, United Sports Brands will serve as the corporate parent for Shock Doctor, McDavid, Cutters and XO Athletic. Shock Doctor was bought last year by private equity firm Bregal Partners.
“We are excited to announce the integration of Shock Doctor and McDavid Inc. under the new name: United Sports Brands,” said Tony Armand, CEO, United Sports Brands, in an interview with Sports Executive Weekly. “Our newly combined company positions us to provide faster customer delivery, a more efficient supply chain and state-of-the-art manufacturing and warehousing. We are truly looking forward to serving the needs of our existing and growing customer base.”
By early 2016, United Sports Brands will move into a new facility in Fountain Valley, CA. This transition will include the following:
The opening of a 120,000-square-foot advanced distribution center capable of serving the needs of the growing, combined organization.
Fountain Valley will become the central hub for sales, marketing and product development teams.
Shock Doctor Sports' current location in Minnetonka, MN, will become the principal home of finance, customer service, operations and information technology.
McDavid Europe (Belgium and Switzerland) and McDavid Japan (Tokyo) will continue to operate as wholly owned subsidiaries of United Sports Brands and will support the sales, marketing, manufacturing and distribution of the portfolio of brands across Asia and Europe.
McDavid’s facility in Woodridge, IL, will close beginning this October, with office, distribution and manufacturing moving to Fountain Valley in 2016.
The consolidation of office, distribution and manufacturing locations are expected to improve our supply chain and better serve customers. Said Armand, who had been president and CEO of Shock Doctor Sports, “As our business continues to grow, our long-term needs will be best met by the two facilities in Fountain Valley and Minnetonka.”
Armand added, “The integration of our companies positions us for growth by allowing the brands to work together more efficiently at the retail and customer level. Unified one-stop ordering and invoicing, along with enhanced marketing support that partners with retailers on a broader, multi brand category level are just several of the ways we envision United Sports Brands will better serve its customers.”
One tradeoff was the closing of its Chicago-area facility and its impact on those employees.
“Our priority is supporting each of them, and while today there is little we can say to make this easier, we are deeply grateful for everything they have done for McDavid,” said Armand. “We will offer a lengthy period of working notice and favorable severance packages and also will be encouraging our Chicago employees to apply for positions in our California and Minnesota locations.”
Added Bob McDavid, chairman, United Sports Brands, in a statement, “Closing the facility in Chicago was a tough decision and there’s no question that this will be a difficult time for our impacted employees. Our priority is helping each person successfully transition through lengthy period of working notice, favorable severance packages and strong encouragement to apply for positions at our locations in California and Minnesota.”
In addition to Armand as CEO and McDavid as chairman, the leadership team of United Sports Brands is comprised of former Shock Doctor Sports and McDavid leaders, in addition to new members. They include Dennis Goetz, CFO; Jay Turkbas, SVP of product development; Mary Horwath, SVP of marketing; Kent Pachl, SVP of sales; Drew Brassard, SVP of operations; Patrick Cloots, SVP of international; Jason Richter, VP of product marketing; Jeff Burnett, VP of operations; and Bill Best, VP of research & development.
“This is an impressive team with a proven record of growing consumer brands, unlocking business value and providing outstanding customer service,” said Armand. “I’m privileged to work each day with a team so committed to making our brands the number one choice for athletes around the world.”
“The combined business is performing very well,” said Armand. “We are excited about the trends in our business as we focus on our vision to be the number one choice for athletes around the world who demand performance and protection. Our integrated company will continue to produce the highest quality products and ensure we remain a leading innovator in the industry.”
At the time the merger was announced, Bregal Partners' co-founder and Managing Partner Robert Bergmann noted that the combination with McDavid represents successful execution of the strategy the private equity firm planned when it acquired Shock Doctor namely, to consolidate the sports medicine protective market, a sector Bregal has long targeted given its focus on the consumerization of healthcare.
“We think the double digit growth trends in the $7B+ global market for sports medicine are only going to accelerate given the focus on safety in youth sports and the increasing physical activity of older adults driven by the desire to stay healthy,” explained Bergmann. “McDavid and Shock Doctor are a perfect fit given their shared reputation for innovation and the well-earned confidence that consumers have in both brands.”
As a privately-held company, United Sports Brands doesn’t share details on its financial performance. But Armand noted that each of the company’s brands continue to perform solidly in the marketplace.
Shock Doctor, the leading mouthguard, continues to strengthen its position with retailers. Said Armand, “Several new products are showing great momentum, including Ice Recovery Compression and Recovery Socks & Sleeves, which have been accepted by athletes in all sports. The revolutionary new AirCore Protective Cup system will debut in November and has been very well received by retailers.”
McDavid continues to build on its reputation in the sports medicine space with pro athletes, sports medicine professionals and athletic trainers.
“Today, McDavid HEX Technology is experiencing amazing growth, particularly with basketball athletes, and our new TEFLX Technology is opening up even greater penetration with youth athletes,” said Armand. “2016 looks to be an exciting year with 30 new products ready for launch as McDavid furthers its leadership in redefining the category of SportMed.”
Meanwhile, Cutters, which makes football gloves and accessories as well as other sports gloves for the baseball, fitness, golf and soccer market, continues to lead the sport glove category with its signature performance C-Tack grip. Shock Doctor acquired Cutters in June 2012.
“We continue to innovate and exceed the expectations of top athletes from the pro level to youth,” said Armand about Cutters. “We are excited about our upcoming new product introductions to expand on our core football business and to build on, and expand our business in baseball/softball.”
XO Athletic, an apparel brand acquired in August 2014, likewise continues to find growth. While best known for its cups and supporters, XO has branched out into mouthguards, chest protectors for baseball and hockey players, and sports bags.
“XO continues to grow in key geographies where consumers have strong awareness and trust in the brand,” said Armand. “We will debut new technology in the XO brand in these key areas of strength.”
Looking ahead, Armand said United Sports Brands will continuously evaluate new acquisition opportunities that would grow its business and allow it to better serve customers. Said Armand, “Over the next five years, United Sports Brands is positioned for growth and will continue to produce the highest quality products as a leading innovator in the industry.”
