Teen apparel cataloger and marketing services provider Alloy has acquired Westbrook, CT-based Old Glory Boutique Distributing, a cataloger of rock music-related accessories, for $9.6 million in cash. The deal does not include Old Glory’s three stores in Connecticut.
In addition to its flagship catalog, which targets teen girls, Alloy owns the CCS and Dan’s Competition catalogs of extreme-sports gear and apparel for teens and young men. Some customers of the latter two titles, says Alloy chief financial officer Sam Gradess, might well be interested in Old Glory’s line of apparel and collectibles. “The deal extends our direct marketing franchise,” Gradess says. “It is a natural extension of our business.”
Old Glory has more than 300,000 names in its database; Alloy’s database exceeds 12.5 million names. Old Glory will keep its name, but Alloy will move its fulfillment out of Old Glory’s Westbrook, CT, distribution center to NewRoads’ Portland, TN, facility in the first half of 2003. NewRoads handles fulfillment for Alloy.
Alloy expects the Old Glory acquisition to increase its fiscal 2003 merchandise revenue by $8 million-$10 million and provide at least $1 million in incremental EBITDA.