MVC, the Italian group behind the cycling and outdoor brands Sportful, Castelli and Karpos, has acquired 70 percent of the U.S.-based triathlon specialist Zoot.
Zoot was founded in 1983 in Kona, Hawaii, and has been headquartered in San Diego, California, since 2003, with a factory in the Philippines. It is one of the most influential and well-known companies in the triathlon sector and expects sales of about $10 million and Ebitda of $3 million in 2023. MVC Group was founded in 1946 by the Cremonese family and is now run by the third generation. It is 40 percent owned by the Equinox Fund. In 2022, the group generated consolidated sales of €132.4 million.
“The acquisition of Zoot aligns with our strategy of growth and expansion and will strengthen MVC’s position in the U.S. market, where we’ve been operating through a subsidiary for more than 20 years, in addition to allowing us to expand in the triathlon segment - a sport that is demonstrating significant growth and has an appealing base of high-spending consumers,” said Alessio Cremonese, CEO of MVC Group. “Zoot’s direct presence in the Philippines will also allow us to benefit from vertically integrated production and further enhance the organizational structure that today manages the Castelli, Sportful and Karpos brands.” Alberto Cremonese, President of MVC and Head of IT, added: “In addition to expanding our presence in the triathlon market, the acquisition of Zoot gives us the opportunity to enhance our positioning in the strategic direct-to-consumer channel, where Zoot generates approximately 70 percent of its turnover, with an operating margin of more than 30 percent.”
The DTC channel is a key growth driver for MVC Group and a key component of the growth plan implemented after Equinox became a shareholder. The goal is to increase the channel’s share of total revenue, which today represents approximately 14 percent, to 20 percent by 2025.
Following the acquisition, Doug Vargo, currently CFO of Zoot, will be appointed CEO of Zoot and MVC US. Shawn O’Shea will become global head of the triathlon division and lead both the Zoot brand and the triathlon component of the Castelli brand.
