Sportsman’s Warehouse to Acquire 8 Field & Stream Stores
September 30 2019 - 8:00AM
Sportsman’s Warehouse Holdings, Inc. (Nasdaq: SPWH) announced today
that it has entered into agreements with DICK’S Sporting Goods,
Inc. (NYSE: DKS) to acquire 8 Field & Stream locations. The
acquired stores will be operated as Sportsman’s Warehouse stores
and are located in Pennsylvania (3), New York (2), North Carolina
(2) and Michigan (1). The total purchase price of $28 million for
inventory and assets will be funded through borrowings under
Sportsman’s revolving credit facility. Sportsman’s will sublease
the eight locations from DICK’S. The transaction is expected
to close on October 11, 2019 subject to customary closing
conditions.
This acquisition is consistent with Sportsman’s
strategy to return to a more typical store growth pattern,
following a period of investment in omni-channel capabilities,
technology, and debt reduction over the last two years.
“We are very pleased to announce this
opportunistic expansion of our current 95 store base through the
acquisition of these 8 Field & Stream locations. Each of these
stores operate in strong markets, with well-established customer
bases. We look forward to serving these communities with our
continued strong commitment to provide outstanding gear and
exceptional service to inspire outdoor memories.” said Jon Barker,
Chief Executive Officer.
Excluding non-recurring costs and non-cash
purchase accounting adjustments, this transaction is expected to be
neutral to EPS in fiscal year 2019, and accretive to EPS in fiscal
year 2020. The acquired stores, both individually and collectively,
meet or exceed the investment hurdle rates that Sportsman’s has
established for opening any new store.
Forward-Looking
Statements
This press release includes forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 as contained in Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of
1934. Forward-looking statements in this release include, but
are not limited to, statements regarding the expected benefits of
the acquisition and the expected timing of the closing of the
acquisition. Investors can identify these statements by the
fact that they use words such as "continue", "expect", "may",
“opportunity”, "plan", "future", “ahead” and similar terms and
phrases. The Company cannot assure investors that future
developments affecting the Company will be those that it has
anticipated. Actual results may differ materially from these
expectations due to risks relating to the Company’s ability to
satisfy the closing conditions in the asset purchase agreement and
consummate the acquisition; the Company’s ability to successfully
integrate the Field & Stream stores into the Company’s business
and to realize the anticipated benefits of the acquisition; the
possibility that the expected benefits from the acquisition may not
materialize as expected or in the timeframes expected; the parties’
ability to meet expectations regarding the timing and completion of
the transaction; retention of employees at the eight acquired
locations following the announcement of the transaction; the
Company’s retail-based business model, general economic conditions
and consumer spending, the Company’s concentration of stores in the
Western United States, competition in the outdoor activities and
sporting goods market, changes in consumer demands, the Company’s
expansion into new markets and planned growth, current and future
government regulations, risks related to the Company’s continued
retention of its key management, the Company’s distribution center,
quality or safety concerns about the Company’s merchandise, events
that may affect the Company’s vendors, trade restrictions, and
other factors that are set forth in the Company's filings with the
SEC, including under the caption “Risk Factors” in the Company’s
Form 10-K for the fiscal year ended February 2, 2019 which was
filed with the SEC on March 29, 2019 and the Company’s other public
filings made with the SEC and available at www.sec.gov. If one or
more of these risks or uncertainties materialize, or if any of the
Company’s assumptions prove incorrect, the Company’s actual results
may vary in material respects from those projected in these
forward-looking statements. Any forward-looking statement made by
the Company in this release speaks only as of the date on which the
Company makes it. Factors or events that could cause the Company’s
actual results to differ may emerge from time to time, and it is
not possible for the Company to predict all of them. The Company
undertakes no obligation to publicly update any forward-looking
statement, whether as a result of new information, future
developments or otherwise, except as may be required by any
applicable securities laws.
About Sportsman's Warehouse Holdings,
Inc.
Sportsman's Warehouse is an outdoor sporting
goods retailer focused on meeting the everyday needs of the
seasoned outdoor veteran, the first-time participant and every
enthusiast in between. Our mission is to provide outstanding gear
and exceptional service to inspire outdoor memories.
For press releases and certain additional
information about the Company, visit the Investor Relations section
of the Company's website at www.sportsmans.com.
Investor Contact:
ICR, Inc.
Rachel Schacter
(203) 682-8200
investors@sportsmanswarehouse.com
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