Ashworth, Inc. Announces Acquisition of Sun Ice(R) Trademarks
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Ashworth, Inc. (NASDAQ: ASHW), a leading designer of golf-inspired
lifestyle sportswear, today announced the acquisition of 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.” About Ashworth, Inc.
Ashworth, Inc. (NASDAQ: ASHW) is a leading designer of men’s
and women’s golf-inspired lifestyle
sportswear distributed domestically and internationally in golf pro
shops, resorts, upscale department and specialty stores and to corporate
customers. Ashworth’s three market-leading
brands include: Ashworth Collection™, a range
of upscale sportswear designed to be worn on and off course; Ashworth
Authentics™, which showcases popular items
from the Ashworth line; and Ashworth Weather Systems®,
a technical performance line. Ashworth is also an Official Apparel
Licensee of Callaway Golf Company.
Ashworth is also a leading designer, producer and distributor of
headwear and apparel under The Game® and Kudzu®
brands. The Game is a leading headwear brand to collegiate bookstores
and Kudzu products are sold into the NASCAR/racing markets and through
outdoors sports distribution channels, including fishing and hunting.
Ashworth is also the exclusive on-site event merchandiser for the
Kentucky Derby.
For more information, please visit the Company’s
Web site at www.ashworthinc.com.
Forward-Looking Statements
This press release contains forward-looking statements related to the
Company’s market position, finances,
operating results, marketing and business plans and strategies within
the meaning of Section 27A of the Securities Act, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. These
forward-looking statements may contain the words "believes,"
"anticipates," "expects," "predicts," "estimates," "projects," "will
be," "will continue," "will likely result," or other similar words and
phrases. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof. The
Company undertakes no obligation to update any forward-looking
statements, whether as a result of new information, changed
circumstances or unanticipated events unless required by law. These
statements involve risks and uncertainties that could cause actual
results to differ materially from those projected. These risks include
the uncertainties associated with implementing a successful transition
in executive leadership, the impact of borrowing base limitations in the
Company’s new credit facility, the evaluation
of strategic alternatives that may be presented, timely development and
acceptance of new products, as well as strategic alliances, the
integration of the Company’s acquisition of
Gekko Brands, LLC, the impact of competitive products and pricing, the
success of the Sun Ice and Callaway Golf apparel product lines, the
preliminary nature of bookings information, the ongoing risk of excess
or obsolete inventory, the potential inadequacy of booked reserves, the
successful operation of the distribution facility in Oceanside, CA, the
successful implementation of the Company’s
ERP system, and other risks described in Ashworth, Inc.’s
SEC reports, including the annual report on Form 10-K for the year ended
October 31, 2007.
