Alloy Buys Dan's Competition for $11 Million, Stock
Alloy Inc., a direct marketer targeting teen girls, yesterday bought Dan's Competition Inc. for 2.1 million shares of its common stock as well as $11 million in cash.Dan's Competition, a 4-year-old Web retailer/cataloger, offers BMX-styled bicycles, as well as clothes and other accessories targeted at teen boys. Some of its key brands include Huffy, Hoffman and Free Agent.
The purchase builds on Alloy's foray into the teen boy market, following its acquisition of skateboarding direct marketer CCS Mailorder just over a year ago. Alloy plans to keep all three brands separate, but revamp Dan's Competition database marketing and possibly reschedule the mailing of its quarterly catalog.
New York-based Alloy, which expects to take in over $90 million in sales this year, said the acquisition could increase its revenue by more than $10 million during the next twelve months.
