Active Apparel Acquires Everlast - Active Apparel Group Inc - Brief Article - Statistical Data Included

Bobbin, Oct, 2000 by George O. Horowitz

Active Apparel Group Inc., a New York, NY-based designer, marketer and supplier of women's and men's activewear, sportswear and swimwear, and the key licensee of the Everlast brand, will acquire the latter in a stock-and-cash deal valued at approximately $60 million. Following the close of the deal, which is expected to take place by the end of the year, Active Apparel will be renamed Everlast Worldwide and will own all worldwide licensing rights to the legendary band, as well as the company's production facilities located in the Bronx section of New York, NY, and Moberley, MO.

In an official statement, George Q Horowitz, Active Apparel's chairman, president and CEO, said: "The opportunity to acquire a brand name on a par with Everlast is quite rare. It is a brand rich in heritage and one that possesses an incredible degree of consumer awareness. ... We think of Everlast as a world-class brand - one that can easily stand alongside the likes of the major brands in the activewear and sporting goods markets."

Founded in 1910, Everlast has become widely recognized as an athletic brand around the world, and it is virtually synonymous with boxing Many champion boxers, including Joe Louis, Jack Dempsey, George Foreman and Evander Holyfield, have used the company's equipment. Moreover, last year Everlast products accounted for more than 50 percent of bag, glove and accessory sales and more than 80 percent of protective equipment sales in the boxing market. At the retail level, including apparel, the brand generates more than $200 million in annual revenues.

Horowitz stressed that the deal should immediately increase the company's revenue twofold. In addition, he stated that consumers will benefit from the increased availability of Everlast brand equipment, apparel and accessories at more retail locations. Currently, more than 3,500 retailers sell the brand, including Gart's, The Sports Authority, Big 5 Corp., Modell's and Dick's Sporting Goods.

Commenting on the sale, Everlas's owner and president, Ben Nadorf, said.

"Quite a few companies were interested in acquiring Everlast. But I felt most comfortable handing over the reins to George [Horowitz].... As a licensor, we have watched George build Active Apparel into a dynamic and highly successful company. We are confident that under' his care an management the brand will continue to thrive and increase in popularity."

As one of its corporate goals going forward, Everlast Worldwide will endeavor to increase the number, scope and global presence of its licensing arrangements. Plus, the company plans to seek licensing arrangements for the introduction of new, high-quality products, and it will look to utilize Everlast's production capabilities to introduce new, equipment and accessories. The acquisition also will transfer ownership of the www.everlast.com domain to Active Apparel, which the company will leverage to expand its e-commerce marketing initiatives.

Upon completion of the acquisition, Horowitz will serve as chairman and CEO, and Nadorf will remain with the company as president of the Everlast Sporting Goods division.

Jules Abend