United Sports Brands Steps into Run/Outdoor with Nathan Sports Acquisition
In a shift from its team-sports focus, United Sports Brands last week acquired Nathan Sports, the maker of hydration, visibility and performance gear largely for the running crowd.
Financial details of the deal were not disclosed.
United Sports Brands was established in late August in the aftermath of the April merger of Shock Doctor Sports and McDavid Inc. Shock Doctor is known as the global leader in mouthguards while McDavid stands as one the leaders in sports medicine and sports protection. The company also owns Cutters, known for its football and baseball gloves, and XO Athletic, a maker of athletic cups and other sports protection accessories.
Although McDavid offers ankle and knee braces for runners, it’s largely known in the team sports space. As such, Nathan will be United Brand’s first acquisition focused squarely on the run and outdoor space. Nathan's range includes hydration vests, belts, handhelds, bottles, running packs, active visibility and reflective vests, and other outdoor gear essentials.
In an interview with Sports Executive Weekly and the B.O.S.S. Report, Tony Armand, CEO of United Sports Brands, called Nathan “an ideal complement to United Sports Brands’ portfolio of products because of its focus on the athlete, offering an array of innovative gear to help athletes run stronger and longer.”
He adds, “As a category builder we were impressed with Nathan’s success in defining and building performance hydration and visibility gear in to essential categories for runners and retail partners.”
Nathan’s principal owner and chairman, Jon Reichlin, will be an investor in United Sports Brands and remain a contributor to the Nathan brand, while Bridgit Lombard, CEO of Nathan, and Tricia Papile, Nathan’s CFO, will continue in a consulting capacity during a transition period.
Nathan, which is headquartered in Philadelphia with its distribution center, is anticipated to relocate operations to United Sports Brands’ headquarters in Minnesota and California in phases beginning in 2016. Armand said United Sports Brands said Nathan’s product development team will remain in Vermont and are not expected to move. Efforts will also be made to retain as many of Nathan’s sales and marketing team members in Philadelphia as possible.
“Our newly combined company has positioned us for expansion, allowing for the continuation of advanced innovation and technology,” Armand said. “We will provide faster customer delivery, a more efficient supply chain and state-of-the-art manufacturing and warehousing.”
Finally, Nathan will extend United Sports Brands global reach. The brand is sold running shops, outdoor retailers and sporting goods stores in 45 countries. For its part, United Sports Brands’ expertise and scale is expected to help Nathan reach its next level of growth.
“Unified one-stop ordering and invoicing, along with enhanced marketing support that partners with retailers on a broader, multi-brand category level are some of the ways we envision Nathan and United Sports Brands being able to better serve its customers,” Armand said.
In a statement, Lombard, who took over as Nathan’s CEO in 2013, said the acquisition “means Nathan can focus on doing what we do best: building programs to drive retail sales and providing innovative products that help athletes run stronger and longer.”
For Reichlin, the sale of Nathan follows his sale of Penguin Brands, the shoe care specialist, to Implus in 2013.Penguin Brands bought Nathan in 2004.
Added Armand, “While we are still determining the exact number of relocation offers, what I can tell you is that we will offer roles to all Nathan’s sales and marketing employees at our locations in California and Minnesota in addition to the possibility of those that may work remotely.”
The acquisition promises to make United Sports Brands a bigger play in acquisitions of other outdoor brands but integrating Nathan is the focus for now.
Said Armand, “As part of our business strategy we continuously evaluate new opportunities that would grow our business and allow us to better serve customers, however, we do not have any further details or announcements to make at this time. Our immediate focus is a smooth transition for Nathan and its customers in to the United Sports Brands family.”