Sports Direct, the sportswear retailer, has agreed a $168.2 million (£84.1 million) deal to buy Everlast, the American maker of boxing gloves and related equipment.

The purchase will broaden Sports Direct’s stable of brands, which includes Slazenger, Dunlop, Karrimor and Donnay.

The company, which also trades as Sports World and owns the Lillywhites sports store in Central London, said that the acquisition was in line with its strategy of buying brands that complement the group’s existing portfolio.

Dave Forsey, the chief executive, said: “The Sports Direct board is confident that this acquisition will benefit our wholesale, licensing and retail businesses, while providing us with a significant stepping stone into the important US market.” Everlast is listed on the New York-based Nasdaq stock exchange. The deal is subject to the approval of the US group’s shareholders.

The company was founded in 1910 in the Bronx as a maker of swimwear. Jacob Golomb, the company’s founder, wanted to make swimwear that would last the entire swimming season, leading to the use of the Everlast name. He went on to open a small shop and later made boxing headgear, after a boxer called on him to develop a piece that would last 15 rounds.

Sports Direct is in the process of repairing its battered image in the City. The company’s shares have tumbled by more than a third since it floated in February after the company failed to grant investors and City analysts access to its finance director.

Mike Ashley, the group’s founder and largest shareholder, caused controversy after he bought a stake in adidas using his own money, rather than pursuing a deal through Sports Direct. The group also parted company with its public relations adviser soon after the flotation.

David Richardson, a former Whitbread executive, stepped down as chairman of the sports retailer three months after the flotation, claiming that he was “unable to establish a strong working relationship with the executive team”.

The Everlast deal will be paid for using the company’s existing credit facilities. The US group made profits of $6.8 million on sales of $39.6 million in the 2006 financial year.

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