New Wave Group of Sweden, parent company of Craft, has acquired the rights to distribute its Craft performance apparel brand in the U.S. and Canada from Karhu North America, which had been Craft's exclusive distributor in North America since 1999. The acquisition was made through New Wave USA, a wholly owned subsidiary of the Swedish group. The acquired business will be managed by Craft Sportswear North America, a newly founded U.S. company and an indirect wholly owned subsidiary of New Wave USA. Huub Valkenburg, the present chief executive of Karhu and the founder of the Craft distribution business in North America, will continue as chief executive of the new company, whose headquarters will remain in Beverly, Massachusetts. The transaction is structured as an asset acquisition, covering inventories, certain intellectual properties and contract rights. The initial purchase price amounts to US$ 3 million, with an additional contingent price of up to US$ 4.75 million based on the results of the business over the next five years.  New Wave designs, acquires and develops brands and products in the corporate promotions, sports, gifts and home furnishings sectors. Through its U.S. subsidiary, the Swedish group owns several businesses in North America including Cutter & Buck, Ahead and Paris Glove.