In a monumental development within the fast-growing industry of Mixed Martial Arts-inspired clothing, Toronto-based Authentic Brands Group, which is headed by sporting goods industry dealmeister Jamie Salter, has acquired three MMA apparel brands, including Tapout, which is arguably the most visible brand in MMA clothing and accessories today.
Silver Star Casting Company and Tapout’s Hitman Fight Gear brands, each of which is widely recognized brand among the MMA following, were also acquired by Authentic Brands. Terms of the deal were not disclosed. Authentic Brands’ Chief Marketing Officer Tim Pogue told Sports Executive Weekly that founders of each company and “key marketing people” would be retained following the acquisition.
Authentic Brands, which is a consumer brand specialist, stated in a release that the company made the acquisitions in order to capitalize on the growth potential within MMA and the Ultimate Fighting Championship (UFC). “This sport is still in its infancy,” said Salter, who is company chairman and CEO. “We strategically chose these acquisitions as our first big move because we're getting into the right business at the right time.”
Tapout, which was founded in 1997 by MMA enthusiasts Charles “Mask” Lewis, Dan “Punkass” Caldwell and Timm “Skyscrape” Katz, did $30,000 in 1999, which was its first significant sales year. By 2009, sales had skyrocketed to almost $200 million and Tapout was the top MMA lifestyle brand in the world. The company now has licenses with numerous “mainstream” retailers, including Dillard’s and Champs Sports.
Last year, Tapout launched a lower priced mid-tier line called Tapout MPS and is now considering a discount line to be sold at Wal-Mart stores, according to reports. Tapout’s Hitman line currently sells at Kmart stores.
“Authentic Brands Group understands what Tapout is about and they share our vision,” said “Punkass” Caldwell. “We believe in Authentic Brands and they believe in us.” Silver Star founder Luke Burrett shared Caldwell’s sentiments, saying that management for Silver Star expects the acquisition to help the company achieve its goals and maximize its potential.
In an interview with SEW, Authentic Brands’ Pogue said the company had “done its homework” on the brands and felt they complemented each other very well. “[The] brands were in the process of switching their business models from operation to licensing and that’s what Authentic Brands does best,” continued Pogue. When asked if Authentic Brands is considering further acquisitions within the sporting goods space, Pogue said the company is “actively seeking” opportunities in several industries, but wouldn’t elaborate further.
