Mega online marketing company buys skateboarding’s flagship mail-order business.
Generation Y e-tailer and Internet direct marketer Alloy Online, Inc. recently announced it has acquired CCS, Inc. Under the terms of the agreement, Alloy has issued approximately 3.3-million shares of stock and repaid ten-million dollars in assumed debt to complete the acquisition from CCS owner Kubic Marketing.
Through its Web site (ccsmailorder.com) and print catalogs, CCS reaches over one-million teenagers each month and sells a complete line of skate and snowboard clothing, shoes, and hardgoods.
Kubic bought CCS last year for an undisclosed amount when it was formed as the holding company for Dwindle Distribution, World Industries, Merge, Inc., and the El Segundo Hat Company. Kubic partner Frank Messmann says the company originally acquired CCS without knowing exactly how it might be partnered with the other Kubic companies. “We acquired CCS because we recognized how much value there was in it,” he says, adding that Kubic immediately began receiving offers from several suitors for CCS. When the partners recognized that CCS’ association with Kubic’s other brands might be perceived as a conflict of interest, they decided to sell. “Alloy seems the most synergetic and most real of all potential buyers,” says Messmann.
Alloy’s previous success resulted from its expertise in young-women’s fashion e-tailing, so the acquisition of CCS gives the company a powerful tool with which to market to the rest of Generation Y, namely young men.
Matt Diamond, Alloy’s cofounder and CEO, recently stated in a press release that “CCS is hands-down the premier direct marketer to Generation Y boys. The effective multi-channel distribution model that CCS uses to capture this market is highly complementary with Alloy’s strategy and should add significantly to our financial performance and future profitability. We plan to leverage the CCS conduit to Generation Y boys to drive both merchandise and sponsorship revenues.”
CCS CEO Mike Adamski will stay on to manage the company. “We are excited to bring together CCS and Alloy, two of the leaders in direct marketing to Generation Y,” he stated in the press release. “We look forward to combining our respective strengths and sharing our resources to better serve our Generation Y customers and realize the economic opportunities in our powerful direct-marketing franchise.”