Fashion apparel maker Hampshire Group has entered into a licensing deal with California-based hiking and climbing-inspired brand Gramicci.

The three year agreement provides Hampshire with licensing rights to design, develop and produce Gramicci brand men's and women's apparel, which is sold in retailers and through its e-commerce website. Gramicci is owned by Hampshire CEO Paul Buxbaum.

"Gramicci is an excellent new addition to Hampshire's portfolio," said David Price, Hampshire's COO. "The brand is well known among outdoor enthusiasts and advances our strategy of diversifying our product offering, distribution channels and customer base.

"We expect both gross and operating margins generated by the Gramicci business to exceed the brand's historical levels as its profitability benefits from operating leverage on Hampshire's infrastructure and sourcing expertise."