Internet retailer MMA Warehouse received a major financial boost when PAG Capital Partners made a major equity investment in the online apparel company Thursday.
Via PAG Capital Partners press release (h/t Robert Joyner on twitter):
MMA Warehouse, LLC is a leading internet retailer specializing in selling a wide selection of mixed martial arts gear, apparel and accessories. MMA Warehouse sells products directly to consumers all over the world through its flagship website. Mika Casey will continue in his role as Chief Executive Officer and has retained a significant ownership stake in the company.
Established in 2004, MMA Warehouse has grown to become one of the largest mixed martial arts retailers in the world. The company achieved record performance in 2010 by providing its customers excellent service and an extensive selection of high-quality merchandise from the industry’s top brands.
“We are very excited to have completed this transaction as we head into 2011,” said Mika Casey, CEO. “In PAG Capital, we have found a partner that will best position us to capitalize on the strong worldwide growth of the mixed martial arts industry. PAG Capital’s strategic and financial support will enable us to continue to invest in our platform, expand our marketing capabilities, and capitalize on the many organic growth and acquisition opportunities available to us in the industry.”
Alex Fridman, Partner at PAG Capital, said, “MMA Warehouse’s track record of growth, best-in-class platform and excellent customer service makes this a very exciting investment for PAG Capital. Mika Casey and his team have built an industry-leading company and we are committed to support them as they build on their momentum of growth and success.”
Payout Perspective:
According to its web site, PAG Capital focuses on acquiring lower middle market companies with untapped potential and partnering with management to build great businesses. This is a good indicator of the continued growth of mixed martial arts if an investment firm is willing to provide financial backing for an online retailer of MMA goods. With the ever expanding UFC and Strikeforce, investors foresee a demand from consumers for MMA goods.
It will be interesting to see what MMA Warehouse will do next. How will it expand its business? Is a physical storefront in its long-term planning? Will it acquire other online retailers?
I noticed they have been conspicuously absent from any UFC sponsorship for at least six months. Was wondering if they were having trouble with cash flow? A lot of their bread and butter t-shirts have gone out of style. Or perhaps this deal was in the works and they just needed to put the brakes on for a little bit. Wouldn’t be surprised to see them open up a chain of stores as a result of this–either that or this is Mika Casey’s exit strategy he’s gone in a year…
Would love a store like that…somewhere close where i live!! In SA, texas!! lol
Never had a cash flow problem, we took on investment in a position of growth and strength. The reason you haven’t seen us sponsor anyone is due to the sponsorship “fee”. Also, I’m not exiting anywhere 🙂