Silver Star, TapouT Acquired By Major Licensing Company

MMA To Madison Ave: “Can You Hear Me Now!?”
By Mike Straka

The fastest growing sport in the world just got put on an even faster track to mainstream awareness and one step closer to Madison Ave’s biggest dollars after one of the biggest brand licensing companies has jumped directly into the deep end of the mixed martial arts’ pool.

Authentic Brands Group LLC, a company with a giant global footprint in the worlds of apparel, consumer electronics and action sports has today announced the acquisition of TapouT, TapouT MPS, Silver Star Casting Company, Iron Star and Hitman Fight Gear to it’s portfolio, which also includes the Bob Marley Brands, among dozens of others.

All parties were mum on the price of the acquisition, but TapouT alone did nearly $200m in sales last year.

In today’s press release, Authentic Brands Group’s Chairman & CEO Jamie Salter said, “This sport is still in its infancy. We strategically chose these acquisitions as our first big move because we’re getting into the right business at the right time. We’re looking forward to working with the best brands and the best athletes in the world as we transition these two companies into global lifestyle brands with our retail and licensing partners.”

In his first interview since the announcement, Silver Star president and founder Luke Burrett tells me the deal took about nine months to close, and it’s going to be mean big things for MMA fans.

“Authentic Brands Group is a brand development and licensing company. In conjunction with Leonard Green & Partners, our mandate is to acquire, manage and build long-term value in prominent consumer brands,” says Burrett, who will maintain his title for the Silver Star and Iron Star brands.

He said ABG’s overall strategy for the brands is to become a full licensing model.

“The beauty of a full licensing model from the consumer standpoint is that the products get better – at least it will with us because our internal mandate is to work with the best in class licensees,” said Burrett. “Its a simple formula really, the best brands work with the best licensees and best retailers. Plus, we have rigorous rules and regulations for our licensees – we literally approve every single product, ad, you name it. Because of this strategy, each partner gets to do what they do best, and we can focus on what we do best – and that’s marketing and building a brand.

That means TapouT’s Punkass and Skyskrape, along with Luke’s wife, Charis Burrett, will continue to be mainstays on the MMA scene — although as part of the same company, and not as competitors as they once were.

Today’s press release makes no mention of TapouT chairman Marc Kreinert.

“With the acquisition of TapouT, Authentic Brands Group now owns the number one MMA lifestyle brand in the world, a brand name that has become synonymous with the sport itself. TapouT has global brand awareness that has grown alongside MMA over the last 15 years by staying focused on the athletes and the fans. Built by three impassioned men who trained in MMA, the late Charles “Mask” Lewis, Dan “Punkass” Caldwell and Timm “Skyskrape” Katz, TapouT has maintained its authenticity through its rapid growth by staying deeply rooted in the MMA culture,” today’s release said.

Burrett says the acquisition of his company has always been part of his and wife Charis’ strategy.

“In business, every company reaches a point where they need to make the best decision for the company,” he said. “Charis and I have put many years into Silver Star and still have a lot of passion for the brand! ABG is the right partner and we look forward to a great future. This acquisition will strengthen every facet of Silver Star, not just MMA, so we look to our partnership with ABG to take the company to the next level in all of areas,” he said.

Silver Star sponsors UFC Middleweight champ Anderson Silva and fan favorite Clay Guida, and has had deals in place at one time or another with the likes of Georges St. Pierre and Jon Bones Jones.

Today’s release also includes quotes from Dan “Punkass” Caldwell, who said “TapouT is more than a company or a brand to me, it is a way of life. With the passing of my best friend and co-founder Charles “Mask” Lewis, we’ve been through a lot. Now we are focused on continuing to set the standard as the industry leader, bringing to life Mask’s dream of building a billion dollar empire. Authentic Brands Group understands what TapouT is about and they share our vision. Mask always said to simply ‘believe’ and that one word became our formula for success. We believe in Authentic Brands Group and they believe in us.”

The buzz about the ABG acquisitions, which may include more brands in the near future (think Sinister), was loud at last month’s UFC Fan Expo, where guys like Burrett, Skrape and Punkass were noticeably more relaxed than usual, with representatives from ABG doing most of the heavy lifting this time around.

“Since we are now going into a licensing model, I will have more time to work with our athletes and the marketing direction of the brand,” he said.

Below is today’s full press release.

FOR IMMEDIATE RELEASE

AUTHENTIC BRANDS GROUP ACQUIRES TAPOUT AND SILVER STAR CASTING COMPANY

NY/LA/Toronto – September 6, 2010 – Authentic Brands Group, LLC, with offices in New York, Los Angeles, and Toronto, is proud to announce the acquisition of TapouT and Silver Star Casting Company (Silver Star), two of the biggest names in the mixed martial arts (MMA) industry. MMA is the world’s fastest growing sport with billions of dollars in annual revenue and global appeal. Authentic Brands Group acquired TapouT and Silver Star as part of its multi-branded
distribution strategy designed to protect brand integrity.

Authentic Brands Group has global brand building experience in apparel, action sports, consumer electronics, home and celebrity brands. The company’s innovative marketing strategies include traditional and social media, and securing partnerships with high profile athletes and celebrities.

Authentic Brands Group’s Chairman & CEO Jamie Salter said, “This sport is still in its infancy. We strategically chose these acquisitions as our first big move because we’re getting into the right business at the right time. We’re looking forward to working with the best brands and the best athletes in the world as we transition these two companies into global lifestyle brands with our retail and licensing partners.”

With the acquisition of TapouT, Authentic Brands Group now owns the number one MMA lifestyle brand in the world, a brand name that has become synonymous with the sport itself. TapouT has global brand awareness that has grown alongside the MMA over the last 15 years by staying focused on the athletes and the fans. Built by three impassioned men who trained in MMA, the late Charles “Mask” Lewis, Dan “Punkass” Caldwell and Timm “Skyskrape” Katz, TapouT has
maintained its authenticity through its rapid growth by staying deeply rooted in the MMA culture.

Caldwell said, “TapouT is more than a company or a brand to me, it is a way of life. With the passing of my best friend and co-founder Charles “Mask” Lewis, we’ve been through a lot. Now we are focused on continuing to set the standard as the industry leader, bringing to life Mask’s dream of building a billion dollar empire. Authentic Brands Group understands what TapouT is about and they share our vision. Mask always said to simply ‘believe’ and that one word became our formula for success. We believe in Authentic Brands Group and they believe in us.”

Silver Star Casting Company is a lifestyle apparel brand that has made its mark in the MMA, action sports and motor sports industries. Founder and President of Silver Star Luke Burrett, and his wife/business partner Charis Burrett, have successfully marketed the brand across these sport categories by supporting athletes and keeping them accessible to the fans. Silver Star is committed to sponsoring only champion level athletes such as MMA middleweight champion Anderson Silva and fan favorite Clay Guida.

“Charis and I are extremely excited to work with the Authentic Brands Group team to take Silver Star to the next level. We’ve built our brand on staying true to our passion for sponsoring champions and making high quality products”, said Luke Burrett. “We are confident that having Authentic Brands Group behind us will allow us to realize our goals and the potential of the brand.”

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About TapouT
TapouT is the world’s leading MMA apparel, gear and lifestyle brand for men, women and children and represents the biggest MMA superstars including Rashad Evans, Rich Franklin, Dan Hardy, Thiago Alves, Chael Sonnen and Roy Nelson. TapouT boasts a sought-after clothing line, a TV reality show, TapouT Radio and is the official apparel brand for Spike TV’s hit reality show “The Ultimate Fighter.” TapouT can be purchased in more than 20,000 retail stores worldwide. Brand names under the TapouT business entity include TapouT, TapouT MPS, and Hitman Fight Gear.
www.TapouT.com www.hitmanfightgear.com

About Silver Star Casting Company
Silver Star Casting Company was founded in 1993 as an athletic lifestyle brand built for champions. Silver Star has a dedicated and loyal consumer base inside mixed martial arts, action sports, motor sports and Hollywood through athlete and celebrity endorsements and has built its reputation as an original, art-driven, edgy and confident trend setter. The Silver Star brand is an official sponsor of the UFC at the mid to upper-tier level of distribution, and its sub-brand Iron Star is available at the mid-tier to mass retail level.
www.silverstarnow.com

About Authentic Brands Group LLC
Authentic Brands Group’s mission, in partnership with Leonard Green & Partners and Knights Bridge Capital Inc. a wholly owned subsidiary of Counsel Corporation, is to acquire a global portfolio of world-renowned brands and to enhance brand equity through partnering with best-in-class brand licensees. ABG acquires iconic consumer brands in the active lifestyle, celebrity, media & entertainment, sporting goods, and consumer electronics segments. Currently the company holds TapouT, Tapout MPS, Silver Star Casting Company, Hitman Fight Gear, and Iron Star in its growing portfolio. The company also manages the Bob Marley family of brands.