US: Concept One to buy Drew Pearson for $8m
Concept One Accessories will end 2006 with its fourth, and largest, acquisition of the year in place.
The company said Monday (18 December) that it has reached an agreement to buy the assets of Drew Pearson Marketing Inc from Mainland Headwear Holdings Ltd, a publicly held headwear firm in Hong Kong and Drew Pearson's biggest source of production, for US$8m in cash.
The merger of the two firms will create a $90m headwear and bag firm, with $70m of its volume coming from headwear sales, making it the second largest licensed headwear firm in the US behind category leader New Era.
Concept One acquired Block Headwear and The Helen Welsh Group in March and SlickCase, a maker of iPod accessories, two months later.
"We are well positioned to absorb this deal and, after a period of nine months, will begin pursuing additional companies in related categories with strong market niches," said Sam Hafif, chief executive officer of Concept One. "We are well on our way to meet our plan for $150m in sales by 2010."
Mainland opted to divest itself of Drew Pearson in order to concentrate on manufacturing and to eliminate potential conflicts of interest with other US-based customers.
Although Concept One hadn't been among Mainland's customers, a separate manufacturing agreement was inked by which Mainland will build a 125,000-square-foot factory, staffed by 1,500 employees, to handle Concept One and Drew Pearson's woven headwear needs.
"Mainland Headwear will now gain a significant customer in Concept One and continue to build business with other US importers they had not done business with in the past," Hafif pointed out.
Concept One's extensive brand portfolio includes hats and backpacks under a wide variety of brand names and entertainment properties, including bags for Major League Baseball, the NHL and the NBA, and headwear under brands including Southpole, Levi Strauss Red Tab, US Polo Association, Original Penguin and Akademiks. It recently added a number of movies and the television show "24" to its sizeable stable.
Distribution is strongest in department stores, specialty stores and mid-tier retailers.
DPM, on the other hand, has significant distribution in sporting goods and outdoor stores as well as in college book stores and sport venues such as baseball stadiums and auto racing arenas. Their licensing relationships include pacts with Nascar, The Walt Disney Co, Warner Brothers, Budweiser and General Mills.
Concept One will continue to maintain its headquarters and showroom on Fifth Avenue and add DPM's products to its home base. It will keep its office in Dallas and add facilities near Wal-Mart's headquarters in Bentonville, Arkansas, and Target's in Minneapolis.
Concept One said the combined company will have more than 20 full-time sales people, 70 independent sales reps and a design staff of over 25. Sam and Bernie Hafif founded Concept One in 1999.
By Arnold J Karr.
Help test our new apparel sourcing tool.
Over half of all apparel sold in the US is either exclusive or private label as more and more retailers realise that the one who gets in the consumer's face first, fast and most often is going to win ...
The Children's Place Retail Stores Inc is to remodel 234 of the Disney Stores it operates in North America into a new format as part of an agreement to end an ongoing dispute with The Walt Disney Comp...
George Pita has resigned as chief financial officer of Perry Ellis International, effective 18 June....
Levi Strauss & Co will introduced a new line of jeans next month for curvaceous women, called Levi's Curvy Cut Boot 528....
The Children's Place Retail has reported preliminary first quarter net income of US$13.1m, but indicated it will need to spend US$175m upgrading stores after license discussions with the Walt Disney C...
Levi Strauss' Philippines division has reportedly failed in its trademark suit against jeans manufacturer Lewis Strong for designs that are "confusingly similar" to its own denim brand....
Perry Ellis International late Monday (14 May) issued preliminary first quarter results in which earnings exceeded analysts' expectations but sales fell short of them....
London department store Liberty has appointed Geoffroy de La Bourdonnaye as its new chief executive with effect from 1 July 2007....
- US apparel sector braces for potential cost hikes
- Vietnam grows share of US apparel imports in 2016
- Trade Tracker – Trump's first weeks, Brexit agenda
- Key trade issues facing US textiles and apparel
- Does a hard Brexit mean hard times for UK fashion?
- Bangladesh "high threat" for terrorist activity
- VF Corp sees Q4 and FY earnings tumble
- Sales at US clothing retailers jumped in January
- Ralph Lauren new execs to support Way Forward Plan
- US Q4 in brief – VF Corp, Kate Spade, Rocky Brands
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Outdoor performance apparel 2016: A broader perspective
- Technical textile markets: product developments and innovations, December 2016
- Global market review of lingerie – forecasts to 2022
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar