2nd Jul 2007 07:01
Sports Direct International Plc02 July 2007 2 July 2007 SPORTS DIRECT PROPOSED ACQUISITION OF EVERLAST CASH OFFER INCREASED TO $33 PER SHARE On 28 June 2007, Sports Direct International plc ("Sports Direct") announcedthat it had entered into a definitive agreement with Everlast Worldwide Inc. ("Everlast" or the "Company") to merge a wholly owned subsidiary of BrandsHoldings Limited (itself the wholly owned subsidiary of Sports Direct) withEverlast for a cash price of $30 per share of Everlast. On 29 June 2007, HidaryGroup Acquisitions, LLC ("Hidary"), submitted an offer to acquire Everlast for$31.25 per share. The Hidary offer provided that Everlast shareholders couldtake up to 50% of the consideration in the form of shares in Hidary or itsacquisition vehicle, neither of which is currently publicly traded. The board of directors of Sports Direct is pleased to announce that SportsDirect has increased its offer price to $33 per share of Everlast, which equatesto an equity value of approximately $149.3 million. Sports Direct's revisedoffer is made up entirely of cash and represents a $1.75 premium to Hidary's$31.25 per share offer of earlier today. The Everlast board has approved of theterms of the revised Sports Direct offer, and Everlast and Sports Direct(through Brands Holdings Limited) have entered into a definitive agreement toamend the terms of the previously announced merger agreement to reflect theincreased offer of $33.00 per share of Everlast. Together with assumed liabilities as at today's date, the revised termsrepresent a total transaction value of approximately $182.3 million(approximately £91.1 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 increased offer represents an attractive premium to Hidary's offer andprovides Everlast's shareholders with execution and deal certainty." said DaveForsey, Chief Executive of Sports Direct. 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