Motorsports merchandise maker Action Performance Companies Inc has bought leather jacket firm Jeff Hamilton Industries Inc, in a $4.5 million deal that leverages its existing licenses into new, high-margin products.

Jeff Hamilton Industries designs and produces premium leather jackets and other apparel featuring licensed logos and images from NBA, NFL, NHL and NASCAR teams and athletes.

Action will acquire all Jeff Hamilton Industries' business and assets, including the "Jeff Hamilton" trade name. With approximately 50 employees, the Los Angeles company has annual revenue of approximately $10 million, and will operate under the name Jeff Hamilton Collection.

Jeff Hamilton, who founded Guess Jeans for men in 1983 and pioneered the market for sports-licensed leather apparel, will join Action Performance as president of Jeff Hamilton Collection under a three-year contract.

The Jeff Hamilton Collection operations will remain in Los Angeles, while accounting and finance responsibilities will be consolidated into Action's corporate headquarters in Phoenix.

"This acquisition is another step in our on-going strategy to expand Action's product offering and distribution channels," explained Action CFO David Martin.