New Wave Group AB's New Wave USA Inc Acquires Craft North America Business From Karhu North America

New Wave Group AB announced that through its wholly owned subsidiary New Wave USA Inc, acquired that part of Karhu`s business relating to distribution of CRAFT products, including inventory, certain intellectual property and contract rights. The transaction is structured as an asset acquisition. The initial purchase price amounts to USD 3 million with an additional contingent price based on the results of the business over the next five years. The total contingent price cannot exceed USD 4.75 million. Three Karhu employees will transfer in connection with the acquisition. Because the acquired business has been operated within Karhu`s other operations, no separate audited sales and earnings statements are available for the CRAFT distribution business. The acquired business will be managed by a newly founded US company: Craft Sportswear North America LLC; an indirect wholly owned subsidiary of New Wave USA Inc. The present CEO of Karhu, Huub Valkenburg who was the founder of the CRAFT distribution business in North America, will continue as CEO of the new company, which will still be operated and headquartered in Beverly, Massachusetts.