FGL Sports, part of the Canadian Tire family of companies, to
acquire Pro Hockey Life
- FGL Sports Ltd., a wholly-owned subsidiary of Canadian Tire
Corporation, Limited, enters into a purchase agreement with Pro
Hockey Life Sporting Goods Inc. for $85
million
- Acquisition of premier, high-end hockey store chain is a
natural extension of Company's strength in sports
- Builds on Canadian Tire's successful acquisition and
integration of FGL Sports
- Accretive to earnings in the first year
- Consistent with Canadian Tire's strategy to seek new platforms
for growth in core categories
CALGARY,
Nov. 28, 2012 /CNW/ - FGL Sports
Ltd., a division of Canadian Tire Corporation, Limited (TSX:CTC)
(TSX:CTC.a) , today announced that it has entered into an agreement
to purchase Pro Hockey Life Sporting Goods Inc., a private company,
for $85 million. The transaction
follows Canadian Tire's successful acquisition of FGL Sports in
2011 and builds on the Company's strength as Canada's leading sports authority.
Pro Hockey Life is a premier sports retailer with 23 urban,
high-end hockey stores operating in five provinces across
Canada. It has annual revenue of
approximately $95 million, a unique
customer base, as well as a more extensive product assortment and
depth of product offering than existing retail banners.
"Hockey isn't merely something we sell in our stores," said
Stephen Wetmore, President and CEO,
Canadian Tire Corporation. "Hockey is in our DNA - whether
it's our relationship with the NHL, helping kids in need through
our Jumpstart charity or supporting junior hockey players and teams
across the country, we are a Canadian company supporting
Canada's game."
"Whether Canadians aspire to be a champion in the playground or
on a podium, Canadian Tire believes it has a role in helping active
people and athletes succeed," continued Wetmore.
"No one knows sports in Canada
better than our family of Canadian Tire companies," said Michael
Medline, President, FGL Sports. "This acquisition is a
natural extension of our core authority in sports and hockey and
Pro Hockey Life will be an excellent addition to our family of
great Canadian companies."
Upon conclusion of the transaction, Pro Hockey Life will operate
as a banner under FGL Sports, joining super brands such as Sport
Chek and Sports Experts. The acquisition will bolster Pro
Hockey Life's capacity to provide Canadians with an unparalleled
selection of hockey equipment, knowledgeable staff and excellent
customer experience. It will also provide FGL Sports with the
ability to serve a broader cross section of hockey players of
varying ages and skill levels.
"I am very proud of how we have grown Pro Hockey Life into a
leader in hockey retail, thanks to the hard work and commitment of
all of our employees," said Scott
Jackson, President, Pro Hockey Life. "Pro Hockey Life has a
bright future as part of the Canadian Tire family and I have no
doubt that the company will reach even greater heights within FGL
Sports."
This transaction, which builds on the successful acquisition of
FGL Sports in August, 2011, is subject to receipt of certain
regulatory approvals, third party consents and other customary
conditions. Completion of the transaction is expected to close in
the early part of 2013.
Blair Franklin Capital Partners acted as financial advisor to
Canadian Tire. Legal counsel was provided to Canadian Tire by
Goodmans LLP and Stikeman Elliott LLP.
Champlain Financial Corporation acted as financial advisor to
Pro Hockey Life. Legal counsel was provided to Pro Hockey Life by
Fasken Martineau Dumoulin LLP.
FORWARD-LOOKING STATEMENTS
This document contains forward-looking information that reflects
management's current expectations related to the proposed
acquisition. Forward-looking statements are provided for the
purposes of providing information about management's current
expectations and plans and allowing investors and others to
get a better understanding of our financial position, results of
operation and operating environment. Readers are cautioned that
such information may not be appropriate for other
circumstances.
All statements other than statements of historical facts
included in this document may constitute forward-looking
information, including but not limited to, statements concerning
the expected benefits of the proposed acquisition, such as growth
potential and market profile; the competitive ability and position
of Canadian Tire, FGL Sports and Pro Hockey Life following the
proposed acquisition; the expected timing of completion of the
proposed acquisition; and management's expectations relating to
possible or assumed future prospects and results, our strategic
goals and priorities, our actions and the results of those actions
and the economic and business outlook for us. Often but not always,
forward-looking information can be identified by the use of
forward-looking terminology such as "may", "will", "expect",
"believe", "estimate", "plan", "could", "should", "would",
"outlook", "forecast", "anticipate", "foresee", "continue" or the
negative of these terms or variations of them or similar
terminology. Forward-looking information is based on the reasonable
assumptions, estimates, analysis and opinions of management made in
light of its experience and perception of trends, current
conditions and expected developments, as well as other factors that
management believes to be relevant and reasonable at the date that
such statements are made.
By its very nature, forward-looking information requires us to
make assumptions and is subject to inherent risks and
uncertainties, which give rise to the possibility that the
Company's assumptions may not be correct and that the Company's
expectations and plans will not be achieved. Although the Company
believes that the forward-looking information in this document is
based on information and assumptions that are current, reasonable
and complete, this information is necessarily subject to a number
of factors that could cause actual results to differ materially
from management's expectations and plans as set forth in such
forward-looking information for a variety of reasons. Some of the
factors - many of which are beyond our control and the effects of
which can be difficult to predict - include (a) the failure to
obtain, on a timely basis or otherwise, required approvals of
regulatory agencies (including the terms of such approvals); (b)
the risk that a condition to completion of the proposed acquisition
may not be satisfied; (c) the risk that the Pro Hockey Life
business will not be integrated successfully; (d) the possibility
that the anticipated benefits and synergies from the proposed
acquisition cannot be realized or may take longer to realize than
expected; (e) the ability of Canadian Tire, FGL and Pro Hockey Life
to retain and attract key personnel and maintain relationships with
customers, suppliers and other business partners, as well as our
financial arrangements with such parties; and (f) credit, market,
currency, operational, liquidity and funding risks generally,
including changes in economic conditions, interest rates or tax
rates; and (g) risks and uncertainties relating to information
management, technology, supply chain, product safety, changes in
law, competition, seasonality, commodity price and business
disruption. We caution that the foregoing list of important factors
and assumptions is not exhaustive and other factors could also
adversely affect our results. Investors and other readers are urged
to consider the foregoing risks, uncertainties, factors and
assumptions carefully in evaluating the forward-looking information
and are cautioned not to place undue reliance on such
forward-looking information.
For more information on the risks, uncertainties and assumptions
that could cause the Company's actual results to differ from
current expectations, please refer to the "Risk Factors" section of
our Annual Information Form for fiscal 2011 and our 2011
Management's Discussion and Analysis, as well as the Company's
other public filings, available at www.sedar.com and at
www.corp.canadiantire.ca.
The forward-looking statements and information contained herein
are based on certain factors and assumptions as of the date hereof.
The Company does not undertake to update any forward-looking
information, whether written or oral, that may be made from time to
time by it or on its behalf, to reflect new information, future
events or otherwise, unless required by applicable securities
laws.
SOURCE FGL Sports Ltd.