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Adidas buys Iowa apparel company

2004-7-20
 
Adidas-Salomon has acquired apparel manufacturer and distributor Valley Apparel Co. of Cedar Rapids, Iowa. Valley, which employs 130, specializes in collegiate and professional league apparel and accessories.

The company will be renamed Adidas Team in 2005. Adidas is not planning to cut the company''s work force, an Adidas spokeswoman said. Adidas also said the cash purchase was for less than $10 million.

"Although this represents only a minor investment for the group, we are confident that this acquisition is another important step to better control the adidas brand in the all-important North American market," said Erich Stamminger, president and chief executive of Adidas America, based in Portland.

Valley is recognized for the ability to produce and deliver large quantities of apparel and branded accessories within hours of a sports team''s victory, Adidas said in a news release.

Adidas manufactures the bulk of its products, including 95 percent of its footwear, in Asia.

Valley became an Adidas licensee in 1999. Initially, Valley produced and distributed T-shirts, fleece and jerseys. The relationship later grew to include licensed headwear and accessories, children''s products and distribution rights for certain Adidas-brand apparel for college bookstores.

Valley will continue to manage Adidas'' licensed products for Major League Baseball and Major League Soccer.

Valley Apparel got its start in 1986 under the name Galt Sand. The company initially made fleece apparel that it distributed to department stores, but it later moved into a market focused on outdoor, wildlife and licensed sports, such as NCAA and the NFL.

In August 1996, Galt Sand was acquired by Starter Corp. and became a wholly owned subsidiary known as Starter Galt, Inc. The company continued its outdoor business, and grew the licensed sport and special event business.

July 1999, saw management from Starter Galt acquire the assets of Starter Corp. and form what is now called Valley Apparel Co.
 
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