ATLANTA — New Era Cap Co., Inc. has signed a seven-year partnership agreement with Mainland Headwear Holdings Ltd. that allows New Era to service its growing demand in Europe and other international markets, as well as gain entry into the Chinese market.
Mainland, which already has a strong retail presence in China, is a leading distribution, design and retailer in Asia, producing headwear under license for Timberland, Warner Brothers, NCAA, NASCAR and Titleist. Under this agreement, Mainland will manufacture and produce headwear for New Era. Mainland will also grant New Era an option to purchase 5 percent of the common stock of Mainland and an additional 15 percent during the first two years of the agreement.
“As our economy expands and new markets emerge,” said Christopher H. Koch, New Era’s CEO, “New Era will continue to identify new opportunities for growth.”
The new partnership also gives New Era the ability to recoup the loss of production capacity resulting from its recent decision to stop business with another Chinese supplier. Further, it gives New Era the ability for greater oversight over manufacturing and distribution and, as Mainland is a participating member of the Fair Labor Association, the enhanced ability to monitor labor conditions.