Gargoyles to Acquire Sungold I-Wear, Continues Strong Growth Trend.KENT, Wash.--(BUSINESS WIRE)--March 10, 1997--Gargoyles Performance Eyewear (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : GOYL), continuing its dramatic growth, has reached a preliminary agreement to acquire Sungold I-Wear, a Farmingdale, N.Y.-based manufacturer of premium sunglasses sunglasses A tinted pair of glasses used to ↓ light arriving at the eye, which are labeled according to the amount of UV light blocked; nonprescription glasses are classified according to use and amount of UV radiation blocked Sunglasses . The sale is expected to close in April. Sungold manufactures two principal lines -- Stussy EyeGear, a successful young men's fashion brand; and Anarchy Eyewear, a cutting-edge brand popular with snowboarders, skateboarders and other alternative sports enthusiasts age 15-25. The acquisition will allow Gargoyles gargoyles medieval European church waterspouts; made in form of grotesque creatures. [Architecture: NCE, 1046] See : Ugliness , known for innovative styling, leading-edge optics and a sports-oriented lifestyle image, to expand its presence in the premium sunglass market by reaching new consumers, said Doug Hauff, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Gargoyles. "This acquisition gives us entree into two new areas that will incrementally grow our business," he said. "One of our key strategies is to acquire brands that can expand our distribution channels. The consumers served by the Stussy and Anarchy brands have been two important targets for us." The premium sunglass industry, with a domestic market of $1.7 billion in retail revenues and an estimated annual growth rate of 7-10% -- is ripe for consolidation, said Hauff. "The demand from industry channels has grown to the point where many smaller companies no longer have the manufacturing and distribution capabilities to remain competitive," said Hauff. "The industry is looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. strong suppliers and partners with new products and inventory necessary to keep up with the growth in demand. The synergy of this acquisition makes sense for both companies." Gargoyles will continue to look for additional acquisitions that are consistent with its strategies, said Hauff. "We believe Gargoyles can be a good home for exciting brands with excellent growth opportunities," he explained. Sungold, which was founded in 1955, will become a Gargoyles subsidiary and will benefit from Gargoyles' existing infrastructure, particularly the company's growing distribution channels, technological expertise and financial strength, said Hauff. Stussy EyeGear is the only licensed brand of Stussy, Inc., a leading designer and manufacturer of "streetwear" apparel and accessories featuring styles that reflect everything from easy California living to the grit of inner city culture. Stussy EyeGear offers a vast array of styles at price points ranging from $60 to $120. Stussy also offers an up-and-coming womens eyewear collection. Anarchy Eyewear features a combination of cutting-edge styling and affordable pricing. The brand's variety of fun, colorful and aggressive styles -- which reflect Anarchy's "Altercation with the Norm" tag line tag line also tag·line n. 1. An ending line, as in a play or joke, that makes a point. 2. An often repeated phrase associated with an individual, organization, or commercial product; a slogan. Noun 1. -- retail from $40 to $70. A similarly styled women's line -- Angel Eyewear -- is also offered by Sungold. Sungold also produces private label sunglass brands for a number of major retailers. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Hauff, the acquisition of Sungold will elevate Gargoyles to the number-three position in domestic premium eyewear sales, behind Bausch & Lomb and Oakley. Gargoyles' net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight have grown from $6 million in 1992 to more than $33 million in 1996. Gargoyles Performance Eyewear, located in Kent, Wash., designs, manufactures and markets a broad line of performance and outdoor-lifestyle-oriented sunglasses, as well as protective eyewear protective eyewear, n See eyewear, protective. . CONTACT: Gargoyles Performance Eyewear, Kent Doug Hauff, 206-872-6100, x3400 or Buntin Public Relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most Rich Scaglione, 615-244-5720 |
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