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Leonard Green & Partners snaps up Sports Authority for $1.3bn
23 Jan '06
2 min read
Sporting goods retailer The Sports Authority Inc has entered into a definitive agreement to be acquired by an investor group led by Green Equity Investors IV, L.P., an affiliate of Leonard Green & Partners, L.P. and including members of Sports Authority's senior management team for $37.25 per share in cash.
The board of directors of Sports Authority, on the recommendation of a special committee of independent directors, has unanimously approved the merger agreement and recommends that Sports Authority's shareholders adopt the agreement.
The total transaction value, including assumed debt, is approximately $1.3 billion. The transaction is expected to close in the second fiscal quarter of 2006, and is subject to Sports Authority's shareholder approval, as well as other customary closing conditions, including the receipt of financing and regulatory approvals.
Doug Morton, the company's Chairman and CEO, said, "Not only does this transaction provide Sports Authority's shareholders with a substantial premium for their shares, but we believe it will be good for the company's associates, customers and suppliers.”
“As a private company, Sports Authority will have greater flexibility to accomplish its long-term goals,” he said.
Jonathan Seiffer, Partner of Leonard Green & Partners, said, "We are pleased to have the opportunity to partner with this exceptional management team and build on the company's track record of growth and successin the retail sporting goods industry."
The board of directors of Sports Authority, on the recommendation of a special committee of independent directors, has unanimously approved the merger agreement and recommends that Sports Authority's shareholders adopt the agreement.
The total transaction value, including assumed debt, is approximately $1.3 billion. The transaction is expected to close in the second fiscal quarter of 2006, and is subject to Sports Authority's shareholder approval, as well as other customary closing conditions, including the receipt of financing and regulatory approvals.
Doug Morton, the company's Chairman and CEO, said, "Not only does this transaction provide Sports Authority's shareholders with a substantial premium for their shares, but we believe it will be good for the company's associates, customers and suppliers.”
“As a private company, Sports Authority will have greater flexibility to accomplish its long-term goals,” he said.
Jonathan Seiffer, Partner of Leonard Green & Partners, said, "We are pleased to have the opportunity to partner with this exceptional management team and build on the company's track record of growth and successin the retail sporting goods industry."
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