CARLSBAD, CALIFORNIA and TORONTO, ONTARIO--(Marketwired - Oct. 2, 2013) - Pacific Vector Holdings Inc (TSX VENTURE:PVH) ("Pacific Vector" or the "Company") a premier action sports retail and consumer brands company announced today that it has acquired a controlling interest in DNA LLC. ("DNA") and has entered into an ongoing licensing agreement through its newly formed, wholly owned subsiduary PVH DNA Inc. ("PVH DNA").
DNA owns iconic skateboarding brands Alien Workshop, Habitat and Reflex, which have been in operation for over 20 years.
Upon the closing of the transaction, scheduled for October 7th, 2013, DNA LLC will the holding company for DNA brands, intellectual property, trademarks and property while PVH DNA will become the operator of the business.
The controlling interest in DNA was purchased for the issuance of 250,000 stock options and $1.5 million in the form of an earn out that will be payable at 8% of DNA branded sales with the first payment due twelve months from closing of the transaction. Following payment of the earn out in full, PVH DNA will pay DNA LLC an ongoing licensing fee of 6% of net sales.
"The DNA Brands are in great hands," said Rob Dyrdek who will continue as minority owner and team rider of DNA LLC. "Chad Foreman and Pacific Vector, together with the three founders, Chris Carter, Mike Hill and Joe Castrucci, have created the perfect partnership to grow and develop the DNA brands. With their combined expertise, talent, and drive, the possibilities are limitless."
Chad Foreman, President of Brands, Pacific Vector Holdings "Our team is very excited about the opportunity to work with such a talented group of employees and skateboarders that are associated with DNA brands. I've admired these brands for a long time, and getting the opportunity to involved with the future growth is exciting. With my background and experience in brand building, and specifically in the skateboarding industry our goals of enhanced sales levels should be reached quickly".
Robert Reynolds, CEO, Pacific Vector Holding "DNA has done an incredible job building their brands in an authentic way throughout the years. We are excited to have DNA as a foundational piece of our brands division as we continue to execute on our growth strategy".
DNA will join the growing list of brands that Pacific Vector controls in the action sports/lifestyle channel.
About DNA LLC:
Dayton, Ohio based DNA LLC is one of the world's leading suppliers of skateboards and accessories. Originally founded in 1990 by Chris Carter and Mike Hill, Alien Workshop was the original DNA brand. Habitat was introduced in 1999 under the creative direction of Joe Castrucci. The brand stands for skateboarding and eco-conscious design. The Habitat and Alien Workshop brands offer a full line of skateboard equipment, softgoods, and accessories. Reflex offers a focused line of hardgoods that includes bearings, tools, trucks, and grip tape. In addition to their own brands, DNA also distributes all the leading brands of trucks, safety equipment and grip tape. (http://www.dnadistribution.com/)
About Pacific Vector
Pacific Vector is a premier action sports retail and consumer brands company. www.pacificvector.com
To receive Company news directly to your inbox, signup at the company's website.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. Pacific Vector assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to Pacific Vector.