Aussie Apparel to Acquire Federation Group Brands
Aussie Apparel Group, a subsidiary of Los Angelesbased Medex, announced its intent to acquire the global rights to several branded apparel properties of Australia’s Federation Group, including Hot Tuna, one of four original surf brands launched in the late 1960s, as well as Xisle, Bulls Head, Piranha Boy, Piranha Girl and Frontier Touring.
According to John Fraser, Federation Group’s managing director, the Australian entity will retain an ownership stake in Aussie Apparel.
“We are extremely excited at what this deal can do for our various apparel brands in terms of the global opportunity,” said Fraser. “Obviously, the U.S. market is the key in terms of gaining a global presence and increased revenue. We felt that Aussie Apparel Group and their management team represents the best opportunity for [our company] to take advantage of the tremendous potential of the apparel brands worldwide.”
Fraser also pointed to the successful track record of Aussie Apparel Group president Bruce MacGregor, who previously helmed both L.A. Gear and Razor. MacGregor touted the experience of Rod Williams, CEO of Hot Tuna, who will move from Australia to Los Angeles to continue managing Hot Tuna and the international business of the other brands in the proposed deal.
“With his extensive background in the industry—particularly as it relates to Rip Curl, where he managed their international business—Rod is and will be an invaluable asset to us as we endeavor to grow these brands into global concerns,” said MacGregor.
MacGregor says that all the acquisitions are synergistic of the corporate focus of Aussie Apparel Group. “Extreme sports and music are the new engines driving contemporary fashion,” he said. “With this in mind, we are extremely excited at the potential these brands offer up in terms of global revenue growth and building shareholder value for all stakeholders, including Federation Group.” —Darryl James
