29th Jun 2007 07:03
Sports Direct International Plc29 June 2007 29 June 2007 SPORTS DIRECT ACQUISITION OF EVERLAST The board of directors of Sports Direct International plc ("Sports Direct") ispleased to announce that Sports Direct has entered into a definitive agreementwith Everlast Worldwide Inc ("Everlast" or the "Company") to merge a whollyowned subsidiary of Brands Holdings Limited (itself the wholly owned subsidiaryof Sports Direct) with Everlast at a price of $30 per share of Everlast whichequates to $135.2 million. Together with assumed liabilities as at today's date,this would represent a total transaction value of approximately $168.2 million(approximately £84.1 million) including expected tax benefits. The transactionremains subject to approval of the shareholders of Everlast and other customaryconditions, including receipt of all necessary antitrust approvals, and isexpected to be completed during the second half of calendar 2007. This acquisition is in line with Sports Direct's strategy of acquiring furtherbrands whose heritage and core values are consistent with Sports Direct'sexisting group brands portfolio. By cross-leveraging the technical expertise andknow-how within the Sports Direct and Everlast businesses, Sports Direct seesopportunities for efficiencies in research and development and to accelerate newproduct development in boxing and related fitness categories. Moreover,Everlast's platform in the US market, where Sports Direct currently has alimited presence, will enable Sports Direct to launch other group brands intothe US market as well as provide the opportunity to derive benefits from anoptimised US distribution network. "The Sports Direct board is confident that this acquisition will benefit ourwholesale, licensing and retail businesses, while providing us with asignificant stepping stone into the important US market," said Dave Forsey,Chief Executive of Sports Direct. Everlast, which trades on the NASDAQ market under the symbol "EVST", engages inthe design, manufacture, import, and sale of boxing and fitness related sportinggoods in the United States and is the worldwide licensor of the Everlast brandfor apparel, footwear, sporting goods equipment and other active lifestyleproducts and accessories. Since 1910, Everlast has been the pre-eminent brand inthe world of boxing and among the most recognised brands in the overall sportinggoods and apparel industries. In fiscal year 2006, the Company generated salesof $39.6 million (approximately £19.8 million) and EBITDA of $9.3 million(approximately £4.7 million). The approximate aggregate consideration of $168.2 million (approximately £84.1million) including tax benefits will be financed by Sports Direct via a drawdownunder a credit facility. As at, and for the year ending, December 31, 2006 thegross assets and profits of Everlast were $65.3 million (approximately £32.7million) and $6.8 million (approximately £3.4 million), respectively. Credit Suisse is acting as exclusive financial adviser to Sports Direct in thistransaction. For further enquiries, please contact: Sports Direct InternationalDave Forsey, Chief Executive 0870 333 9400Bob Mellors, Group Financial Director Financial DynamicsJonathon Brill / Ben Foster / Andrew Dowler 020 7831 3113 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Frasers Group