Genesco Inc announced that its Hat World subsidiary has entered into an agreement to acquire Hat Shack Inc, Marietta based Hat Shack operates 49 retail headwear stores located in 10 states, primarily in the southeastern United States.
The purchase price for Hat Shack is $18 million, subject to adjustment based on net asset levels at closing, and is planned to be funded from cash on hand or available borrowing capacity.
Closing of this transaction, which is subject to customary conditions, is expected in the fourth quarter of fiscal 2007 or first quarter of fiscal 2008.
Kenneth J. Kocher, Hat World President, said, "We look forward to strengthening Hat World's position as the leading retailer of headwear in North America through the acquisition of Hat Shack's stores."
"Hat Shack has been a primary competitor in the southeastern U.S., and adding its 49 stores to our existing base of more than 700 stores will represent a significant step forward in our plans for continuing store growth."
Genesco said it expects the acquisition to have a slightly positive effect on the Company's earnings for the fiscal year ending February 2, 2008.
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