Company acquisitions are a common occurrence in the market these days, and the sporting goods industry is no different than other industries. Dick’s Sporting Goods has announced they have reached an agreement to acquire Chick’s Sporting Goods with closing by year end. Dick’s Sporting Goods is located throughout the country and they are expanding their California presence through the acquisition of Chick’s Sporting Goods which is located in Southern California. This information was provided in a recent press release from Dick’s Sporting Goods, Inc.
The total value assigned to Chick’s Sporting Goods in this acquisition is $71 million. Dick’s Sporting Goods will make this acquisition by paying $40 million in cash for the equity of Chick’s, and will assume the $31 million of indebtedness of Chick’s Sporting Goods, according to the press release. Chick’s Sporting Goods has 15 speciality sporting goods stores located in southern California. According to the press release, the stores average size is 50,000 square feet. These stores generated more than $120 million in sales for Chick’s Fiscal Year of 2007 which ended on June 30th according to the press release. Chick’s Sporting Goods has two leases they have signed for additional stores that will open in 2008 and 2009. After this acquisition is complete, those stores will open under the Dick’s Sporting Goods name and logo. The acquisition is expected to be completed on December 31, 2007 or before that date.
“Chick’s Sporting Goods is well positioned in several important Southern California markets. This acquisition provides the Company with an immediate presence and market share in Southern California. The passion with which Chick’s Sporting Goods serves the core athlete and California lifestyle cutomers which include beach and skate markets via their assortment featuring products from authentic manufacturers, commitment to customer service and knowledgeable sales associates, along with Chick’s community involvement compliments Dick’s Sporting Goods strategy.”, said Edward W. Stack, who is the Chairman and CEO of Dick’s Sporting Goods.
Dick’s Sporting Goods had 340 stores in 36 different states in the United States at the beginning of November of this year. The majority of these locations are currently in the eastern region of the United States. Dick’s Sporting Goods sells a large variety of sports related equipment and supplies. These include areas such as equipment, apparel, and footware, but are not limited to those specific areas. Dick’s Sporting Goods also owns Golf Galaxy, which is a golf retailer. There are 77 Golf Galaxy stores in 29 states throughout the United States.
