MVC Group Acquires Majority Stake in Triathlon Gear Company Zoot
MILAN — Signaling the ongoing appetite for performance sportswear, Italy-based MVC Group, which produces outdoors and cycling clothing under the Castelli, Karpos and Sportful labels, has acquired a 70 percent interest in the American brand Zoot, a leading supplier of triathlon gear.
The financial details were not revealed. The move indicates MVC Group’s ambitions toward expanding its footprint in the U.S., as well as strengthening its direct-to-consumer strategy, the latter one of Zoot’s key strengths.
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“The acquisition of Zoot aligns with our strategy of growth and expansion and will strengthen MVC’s position in the U.S. market, where we’ve been operating through a subsidiary for more than 20 years, in addition to allowing us to expand in the triathlon segment — a sport that is demonstrating significant growth and has an appealing base of high-spending consumers,” said Alessio Cremonese, chief executive officer of MVC Group.
According to a recent report by Future Market Insights, the triathlon clothing market is expected to hit $2 billion in 2023 and increase at a compound annual growth rate of 9 percent to $4.9 billion by 2033.
MVC Group, which was founded in 1946 by the Cremonese family, had sales of 132.4 million euros in 2022 and continues to be owned and managed by the founding family. In 2019 Luxembourg-based private equity firm Equinox acquired a 40 percent stake in the MVC, with the goal to broaden the group’s d-to-c business, currently accounting for 14 percent of sales.
“Zoot’s direct presence in the Philippines will also allow us to benefit from vertically integrated production and further enhance the organizational structure that today manages the Castelli, Sportful and Karpos brands,” Cremonese added.
Zoot was founded in 1983 in Kona, Hawaii and has been based out of San Diego since 2003. In 2023 revenues are expected to hit $10 million with earnings before interest, taxes, depreciation and amortization of $3 million.
“In addition to expanding our presence in the triathlon market, the acquisition of Zoot gives us the opportunity to enhance our positioning in the strategic direct-to-consumer channel, where Zoot generates approximately 70 percent of its turnover, with an operating margin of more than 30 percent,” said Alberto Cremonese, president of MVC Group and head of the IT division.
Following the acquisition, Doug Vargo, chief financial officer of Zoot, will be appointed chief executive officer of Zoot and of MVC Group’s U.S. subsidiary, while Zoot president Shawn O’Shea will take on the role of global head of the triathlon division, with responsibility for the Zoot brand and the triathlon component of the Castelli label.
“We are excited to join MVC Group, and we are confident that the expertise of its management team and the synergies that can be developed will provide new growth opportunities for Zoot. MVC’s e-commerce platform will allow us to expand our reach into new and interesting markets such as Europe, Japan and China,” O’Shea said.
Equinox partner Massimiliano Monti touted the deal for expanding MVC Group’s scope across new categories, markets and channels.
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