Xenith, LLC, manufacturer of the high-end X1 football helmet, has reportedly raised $10.5 million in equity financing from its existing investors. The company said the funds will be used to continue the company's research and development activities for head protection applications, as well as expand its production, sales and marketing capabilities.
Xenith was founded in 2004 by Vin Ferrara, a former Harvard University quarterback with medical and business degrees from Columbia University. Ferrara and Xenith developed a unique, patented system called Xenith Adaptive Head Protection, which features an adaptive snug fit system and adaptive air-cell shock absorbers.
The company's first product, the aforementioned X1 helmet, has been worn since its certification in 2007, and the company said it is “rapidly gaining market share at all levels” of football participation. The company sold approximately 12,000 X1s in 2009, its first official year of sales, and doubled its sales in 2010. In an interview with SEW editors, Ferrara said Xenith’s account base has grown to approximately 200 dealers this year compared to fewer than 100 in the year-ago period.
It’s also worth noting that this development follows close on the heels of Schutt’s recent bankruptcy protection filing, which stemmed from a federal court ruling ordering Schutt to pay nearly $30 million to Riddell for patent infringements. The future remains in limbo for Schutt Sports, which is arguably Xenith’s top competitor.
When asked about the effects of the ruling for Xenith, Ferrar responded, “There is a lot of uncertainty for dealers now, and we’ve found that (this) is working to our advantage ”
The litigation surrounding Schutt also pose an opportune time for Rawlings to enter the market with its first football helmet which is exactly what the company will do this spring with the launch of its NRG football helmet.
It’s no surprise that given Schutt recent legal misfortune, many companies might be looking to fill that void with their own branded equipment. The month of September has seen Schutt Sports forced to file Chapter 11 bankruptcy protection in early after losing a patent battle with Riddell. To date, Schutt is appealing the court's $29 million judgment employing the brand to pay Riddell in the patent infringement case.
Needless to say, it’s a opportune time for Rawlings to begin launch on a line of football helmets. As it stands, it’ll be the first line of Rawlings branded football helmets in nearly two decades. The company will only be outfitting a limited number of high school, college and professional athletes with helmets this fall in advance of its planned launch in March 2011.
“We never left the football business, which we've been in for over a hundred years,” David Hill, senior director of fall product development, told the St. Louis Post-Dispatch. “Helmets were somewhat of a missing link.”
The Rawlings branded helmets will be manufactured in Springfield, MO by a subsidiary, Jarden Plastic Solutions, and assembled at Rawlings' facility in Washington, MO.
Following advancement on the company’s S100 baseball helmet, Rawlings began evaluating football helmets three years ago. Since announcing its Neuro Responsive Gear football helmet series in July, Rawlings has seeded more than 300 helmets with NFL practice squads and athletes on various high school teams.
