Redcats USA to buy Sportsman's Guide for $265m

05 May '06

2 min read

Sportsman's Guide Inc, a leading catalog and online marketer of outdoor and sports gear, and Redcats USA Inc, a leading catalog and online marketer of apparel and home products operating in North America, announced that Sportsman's Guide has entered into a definitive agreement pursuant to which VLP Corporation, a wholly owned subsidiary of Redcats USA, will acquire all of the outstanding shares of Sportsman's Guide in a cash merger for a price of $31 per share.

The $31 per share price represents a 20.2 percent premium over the three-month average trading price of $25.80 and a 14.8 percent premium over yesterday's closing price. The transaction values Sportsman's Guide at approx. $265 million, including the value of outstanding stock options.

The board of directors of Sportsman's Guide has unanimously approved the merger agreement and has agreed to recommend to The Sportsman's Guide's shareholders that they vote to adopt the merger agreement and approve the merger.

The transaction is expected to close during the third calendar quarter of this year, and is subject to Sportsman's Guide shareholder approval, as well as other customary closing conditions, including the expiration of the Hart-Scott-Rodino waiting period. The transaction is not subject to financing.

Gregory Binkley, President and CEO of Sportsman's Guide stated, "We are pleased to make today's announcement. We believe that the price is consistent with management's goal of maximizing shareholder value and we believe that Redcats USA represents a great fit for the Company, its customers, associates and managers."

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