New Era Cap Company Expands Into China

Article written by: Rodrick Rainey
Posted on: November 16, 2008

New Era Cap (click here to visit) Co., Inc. announced Tuesday a seven-year contract with Mainland Headwear Holdings Ltd., with an option to buy a stake in the Chinese company.

New Era officials said the deal will allow the company to service demand in Europe and other international markets and enter the lucrative and expanding Chinese market where Mainland already has a strong retail presence.

Terms call for Mainland Headwear to manufacture and produce headwear for New Era Cap. Mainland will also grant New Era an option to purchase 5 percent of the common stock of Mainland and an additional 15 percent during the first two years of the agreement.

Buffalo-based New Era Cap and while primarily known as the provider of caps Major League Baseball and other professional, collegiate and amateur athletics, the company has been expanding into additional headwear design and manufacturing.

Mainland Headwear was established in 1986 and listed on the Hong Kong Stock Exchange in 2000. The company is principally engaged in the design, manufacture and distribution of headwear.

Visit the official New Era Cap Shop (click here to visit).