News January 10, 2022
SKYOU Acquires OTC & Apparel, Shark Sportswear
The deal involves promotional products companies based in San Diego.
SKYOU Inc. (asi/87637), a San Diego-based promotional products supplier/custom manufacturer, has acquired fellow San Diego firms OTC & Apparel (asi/38196) and Shark Sportswear LLC. Financial terms were not released.
Going forward, the companies will sell under the OTC & Apparel brand in the promo products market. SKYOU is the parent company.
Executives said the partnership provides a number of advantages, including enhanced combined resources for providing promo distributors with custom products. The partners have factories in Tijuana, Mexico and Guangzhou, China. The firms’ combined catalogs can be produced at both factories, and all customers can benefit from custom sourcing services, executives said.
“We feel that owning our own factories in Guangzhou, China and Tijuana, Mexico puts us at an advantage to better service our low/no MOQ customers quickly, from Tijuana, while still benefiting from the scale and supplier ecosystem in mainland China,” said Brennan Mulligan, CEO/founder of SKYOU.
Founded in 2014, OTC & Apparel’s offerings center on the design and manufacturing of exhibit and display products, as well as apparel and bags. Shark Sportswear focuses on providing what it describes as elite performance apparel for coaches and teams across the country.
SKYOU specializes in custom manufacturing, creating each product from scratch, particularly small-batch cut-and-sew projects. The company has built a manufacturing platform that includes a 3-D tool that allows users to design products, download mockups, and see “exactly what will be manufactured (with) pixel-to-inch accuracy,” the firm said.