Tag-It Extends Deal With Levi's
Woodland Hills, Calif.–based trimmings supplier Tag-It Pacific Inc. has extended its exclusive deal with Levi Strauss & Co. to provide TekFit stretch waistbands for Levi’s Dockers division.
Tag-It has been supplying the patented waistbands to Levi’s for nearly two years. Tag-It company officials estimate the new deal, good through November 2006, will yield the company about $35 million to $40 million. It is unknown whether the potential sale of the Dockers brand, which in May Levi’s announced it was exploring, would affect the transaction.
The Tag-It agreement gives Levi’s exclusive rights to the product for all of its men’s pants, excluding denim. It also gives Levi’s an option to gain exclusive rights to the product for its women’s line.
“This agreement validates both the market acceptance as well as our corporate growth strategy for TekFit,” said Tag-It Chief Executive Officer Colin Dyne. —Robert McAllister
