The Weekly Wrap: Sept. 4 - Sept. 10

Tapout Sold

Tapout, the brand second only to the UFC in being synonymous with the sport, has a new owner.

Authentic Brands Group LLC, a New York-based company founded earlier this year, acquired Tapout and its department store subsidiary Tapout MPS as part of a spree of MMA-related purchases. The company has also purchased Hitman Fight Gear and Silver Star Clothing Company, suddenly consolidating a large chunk of the MMA apparel and sponsorship market.

Authentic Brands’ stated mission is to “actively acquire and manage iconic consumer brands in the apparel, sporting goods, action sports, home, celebrity, entertainment and consumer electronics segments” and license those brands to retailers.

At another company, Authentic Brands head Jamie Salter oversaw the acquisition of The Sharper Image and brands associated with Bob Marley, according to a Bloomberg report. Salter started Authentic Brands earlier this year with backing from Leonard Green, a billionaire investor whose firm owns stakes in Sports Authority and Whole Foods Market, Bloomberg reported. Authentic Brands also owns snowboard and extreme sports brands. Salter told Bloomberg he expects to double Tapout revenues in two years. A public stock offering for the company has long been rumored.

Terms of the deal, including sale price, were not disclosed. Famously growing from hawking shirts in car trunks to department stores, Tapout reportedly generated just under $200 million in sales last year. It has expanded into the gym business with licensed “Training Centers” in Las Vegas, Boston, California and Canada.

The company lost its iconic founder and figurehead Charles “Mask” Lewis to a car crash in 2009, leaving partners Dan “Punkass” Caldwell and Timm “Skyskrape” Katz in charge. Caldwell and Katz will stay on under Authentic Brands as president and marketing director of Tapout. Tapout president Marc Kreiner left the company in the deal.

On a conference call about the sale, Caldwell and Katz promised nothing appreciable will change about Tapout, but the deal will help them streamline their manufacturing and expand into new stores and markets. Caldwell said Tapout will continue to compete with Silver Star and Hitman for fighter sponsorships despite being under the same ownership umbrella.