Sporting goods retailer Forzani to purchase Athletes World
22 Nov '07
2 min read
The Forzani Group Ltd Canada's largest retailer of sporting goods announced its proposed acquisition of Athletes World Limited.
On October 30, 2007 Athletes World, a national retailer of athletic and recreational footwear and apparel, sought and obtained protection under the Companies' Creditors Arrangement Act.
The 100% acquisition of Athletes World, which is headquartered in Toronto, Ontario, will be financed through existing credit facilities.
In its most recently completed fiscal year, Athletes World generated $186 million in revenues, and currently operates 138 stores.
Athletes World Limited will seek court approval of the transaction later this week. If that approval is granted, it is expected that the transaction will close at the end of November subject to the satisfaction of conditions customary in a transaction of this nature.
Following the acquisition, FGL intends to support the continuation of the restructuring of Athletes World under the CCAA.
The acquisition of Athletes World represents a great opportunity for FGL to add another recognized national banner.
FGL management believes that FGL's buying power, operational expertise and experience will provide the necessary platform on which to base Athletes World's long-term profitability upon its emergence from CCAA proceedings.
In order to maintain Athletes World's positioning and identity, FGL anticipates that Athletes World will, as it has with its other banners, maintain dedicated office staff, store employees and operational functions.
Once the proposed acquisition is completed, senior management of FGL will host a conference call to discuss the acquisition and its plans for the Athletes World banner.
marketing@alchempro.com
