Ashworth, Inc. (NASDAQ: ASHW), a leading designer of golf-inspired lifestyle sportswear, has acquired the Sun Ice® and Sunice® trademarks from Fletcher Leisure Group Inc. ( “FLG”). The Company expects to launch a new golf-related technical outerwear line during 2008 under this brand in the United States, the United Kingdom, Ireland and Europe.
Ashworth established a wholly-owned subsidiary, Sunice Holdings, Inc., which will own the Sun Ice and Sunice trademarks and be entirely focused on the new technical outerwear line. The product line will be concurrently marketed by the company’s existing sales and marketing team dedicated to Ashworth®-branded apparel. FLG will provide design services for Sunice Holdings, Inc. and facilitate sourcing relationships for the new outerwear line.
The purchase price for the trademarks consists primarily of participation in the future EBITDA of Sunice Holdings, Inc.
Edward J. Fadel, president of Ashworth, Inc. who will oversee all operational aspects of Sunice Holdings, Inc., commented on the acquisition, “The recognized strength of the Sun Ice brand in technical outwear complements our existing strength in Ashworth golf-inspired apparel, offering significant cross-selling opportunities and anticipated penetration of new accounts for both brands.
“The Sun Ice line should also leverage Ashworth’s existing sales and distribution infrastructure by enabling the concurrent marketing of two high quality, complementary product lines and expanding our overall base of sales.”
Allan H. Fletcher, chief executive officer of Ashworth, Inc., commented, “The relationships and outerwear expertise acquired in this transaction will also promote improvements to the Callaway Golf apparel outerwear product line and further strengthen the Company’s position in the golf market.”
Ashworth, Inc. www.ashworthinc.com
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