The New Wave Group AB’s U.S. subsidiary has acquired Karhu North America’s business to distribute Craft products.
Karhu North America has been selling Craft products in the U.S. and Canada since 1999. As part of the deal, New Wave USA acquired that part of Karhu’s business that relates to distribution of Craft products as well as inventory, certain intellectual property and contract rights. The acquired business is being managed by the newly formed Craft Sportswear North America LLC, an indirect wholly owned subsidiary of New Wave USA.
Karhu chief executive officer Huub Valkenburg, the founder of Craft’s distribution in North America, continues in his current role. The company will still be run from its headquarters in Beverly, Mass.
Set up as an asset acquisition, the initial purchase amounts to $3 million with an additional contingent price based on business results over the next five years. The contingent price cannot exceed $4.75 million, according to a company spokeswoman.
The New Wave Group, a $640 million Sweden-based company, is eager to develop its presence in the North American market.