WHAM-O, Inc., the leading manufacturer of innovative outdoor fun products for every season, today announced the acquisition of Riva Sports, Inc., a Rockville, Maryland-based maker of winter recreational products. As a global leader in the snow sporting goods category, WHAM-O’s acquisition of Riva marks the company’s second action sports-related acquisition in the past 7 months (WHAM-O also acquired Earth and Ocean Sports (EOS) and its leading brands, SLEDZ(TM) snow sleds and BZ(R) PRO BODY BOARDS, in late 2002), vastly expanding its existing market position and broadening its family of foam-based snow products currently sold under the SNOWBOOGIE(R) and SLEDZ(TM) brands to now include Riva Sports plastic-based single rider and family snow sleds, snow saucers, mini-sleds, snowboards, snow goggles and snow protective gear. Financial terms of the deal were not disclosed.
The acquisition of Riva is a coup for WHAM-O’s snow division and will provide WHAM-O with a full spectrum of products and a greater combined market share in the fast growing snow sports and sled industry. The combination of the two companies will enable WHAM-O to better serve its customers, and ultimately its consumers by offering the most innovative snow sports and sled products in mass, sporting goods and specialty retail channels.
“Companies like Riva and WHAM-O, have introduced and re-energized an industry that generates an estimated $100 million to $150 million in annual sales. Riva’s products are an excellent strategic fit for WHAM-O, having developed the most durable, versatile and advanced lines of plastic-based snow sleds and snowboards, and packaged them with a strong consumer visual appeal and sizzling retail shelf presence,” said Mojde Esfandiari, president and CEO of WHAM-O, Inc. “This acquisition will undoubtedly provide WHAM-O with numerous synergistic opportunities for growth, as we will now have foam- and plastic-based sleds at every price point and the most complete product offering of snow products in the marketplace.”
Esfandiari added, “We expect Riva’s brand to enhance WHAM-O’s position in markets that are viewed by WHAM-O as important to growth. The combination of experience and strength gained through this acquisition will bolster WHAM-O’s brand leadership and innovation and will make us the number one marketer of foam and plastic sleds and snowboards in the industry.”
“Consumers have more options than ever before as the U.S. sled market has grown to include everything from basic saucers to more complex high-performance sleds,” said Steve Felsen, senior marketing director for WHAM-O’s snow and surf divisions. “Today’s sleds come with cool designs, hot hues, padded seats and the strength to withstand any punishment that a hill or human can deliver. Consumer buying patterns have shifted, and the decision to buy is now not only based on safety, but also on a sled’s speed, weight, comfort and cost.”
Felsen added, “The entire category has grown and benefited from the introduction of the new foam- and plastic-based sleds, which provide an increased thrill factor and in some cases, have leveraged sledding ideas from the popular Olympic sports, luge and skeleton. As a result, the sled category has moved out of the traditional toy aisle and settled as a fixture in the sporting goods department. A simple red piece of plastic with a handle cut into it just doesnt click with kids anymore.”
