PITTSBURGH, April 4, 2012 /PRNewswire/ -- Dick's Sporting
Goods, Inc. (NYSE: DKS) announced today that it has agreed to make
a 20 million pounds Sterling
strategic investment in JJB Sports plc, a leading U.K. sports
retailer.
Under the terms of the agreement, Dick's Sporting Goods will
purchase 18.75 million pounds in junior secured convertible
notes and 1.25 million pounds in ordinary shares of JJB
Sports, subject to the approval of JJB's shareholders. In addition,
Dick's has been granted the option to purchase an additional 20
million pounds in junior secured convertible notes of JJB in
connection with a follow-on financing expected to take place in the
first fiscal quarter of 2013. Subject to certain conditions, the
notes are convertible into ordinary shares of JJB Sports at Dick's
election. Upon full conversion of the notes, Dick's would become a
controlling shareholder of JJB. Certain current shareholders of JJB
are also expected to participate in the 2012 and 2013 financings
through the subscription for 10 million pounds and 5 million
pounds, respectively, of additional ordinary shares of JJB.
In conjunction with its investment in JJB Sports, Dick's will be
entitled to nominate up to two non-executive directors to serve on
the Board of JJB. Dick's will also be entitled to Board observer
rights under certain circumstances.
"This is an exciting strategic investment that provides us with
a valuable introduction into the workings of the United Kingdom sporting goods market from an
established company that shares our commitment to serving the needs
of core athletes," said Edward W.
Stack, Chairman and CEO. "By partnering with JJB, we will be
positioned to share our more than 60 years of operating experience
in the United States while gaining
insight into the specific needs of U.K. athletes, which will serve
as a stepping stone for our company's future growth and
development."
"Our alliance with Dick's, along with the support of our current
shareholders and key vendors, gives JJB a significant capital
infusion, which we will use to restructure our business, refresh
and refit our stores, and build our position as one of the U.K.'s
market-leading sporting goods stores," said Keith Jones, CEO of JJB Sports. "As we pursue
these initiatives, we also look forward to drawing on Dick's
valuable intellectual capital, which is backed by extensive
experience in serving core athletes in the U.S. market."
About Dick's Sporting Goods, Inc.
Dick's Sporting Goods, Inc. is an authentic full-line sporting
goods retailer offering a broad assortment of brand name sporting
goods equipment, apparel and footwear in a specialty store
environment. The Company also owns and operates Golf Galaxy, LLC, a
golf specialty retailer. As of April 4,
2012, the Company operated more than 480 Dick's Sporting
Goods stores in 44 states, 81 Golf Galaxy stores in 30 states and
eCommerce websites and catalog operations for both Dick's Sporting
Goods and Golf Galaxy. Dick's Sporting Goods, Inc. news releases
are available at http://www.dickssportinggoods.com/investors.
The Company's website is not part of this release.
About JJB Sports plc
JJB Sports plc (JJB: LSE) is one of the U.K.'s leading sports
retailers. The Group, headquartered in Wigan and listed on the AIM,
currently trades from over 180 JJB branded retail stores in the
U.K. and Ireland and employs over
3,600 people. Further information about the Group can be found on
the Group's corporate website, www.jjbcorporate.co.uk.
JJB Analyst Call
JJB Sports plc will be hosting a call for its analysts at
9:00 a.m. BST on April 5, 2012. The call can be accessed via
webcast at
http://www1.axisto.co.uk/webcasting/investis/jjb/jjb-announcement/.
JJB Sports' investor presentation and website are not part of this
release. Statements made by JJB Sports are not verified or
adopted by Dick's, and are made as of the date of the
presentation. Dick's assumes no duty to verify or update the
information provided in JJB Sports' investor presentation or on its
website.
Forward-Looking Statements Involving Known and Unknown Risks
and Uncertainties
Except for historical information contained herein, the
statements in this release or otherwise made by our management in
connection with the subject matter of this release are
forward-looking statements (as such term is defined in the Private
Securities Litigation Reform Act of 1995) and involve risks and
uncertainties and are subject to change based on various important
factors, many of which may be beyond our control. Our future
performance and financial results may differ materially from those
included in any such forward-looking statements and such
forward-looking statements should not be relied upon by investors
as a prediction of actual results. You can identify these
statements as those that may predict, forecast, indicate or imply
future results, performance or advancements and by forward-looking
words such as "believe", "anticipate", "expect", "estimate",
"predict", "intend", "plan", "project", "goal", "will", "will be",
"will continue", "will result", "could", "may", "might" or other
words with similar meanings. Forward-looking statements include,
among other things, statements about our future expectations
regarding the completion of Dick's investment in JJB Sports, a
follow-on financing by JJB Sports, whether or not Dick's will
convert the notes into ordinary shares of JJB Sports, participation
by current shareholders of JJB Sports in the 2012 and 2013
financings, Dick's ability to gain insight into the U.K. sporting
goods market, whether the investment by Dick's in JJB Sports will
serve as a stepping stone for Dick's future growth and development,
the restructure of JJB Sports' business or the refresh or refit of
its stores, or whether JJB Sports can become a market-leading
sports retailer.
The following factors, among others, could cause actual results
from Dick's investment in JJB Sports to differ materially from
those expressed or implied in any forward-looking statements
included in this release or otherwise made by our management: the
ability of JJB Sports to execute on its turnaround plan;
continuation of the ongoing economic and financial downturn in the
U.K. and other changes in macroeconomic factors or market
conditions that impact consumer spending in the U.K.; changes in
the general economic and business conditions in the U.K. and in the
specialty retail or sporting goods industry in particular; costs
and risks associated with increased or changing laws and
regulations affecting JJB Sports' business; the impact of foreign
instability and conflict; the support of shareholders and other
stakeholders of JJB Sports in connection with the 2012 and 2013
financings, as well as other factors.
We do not assume any obligation and do not intend to update any
forward-looking statements except as may be required by the
securities laws.
Contact
Timothy E. Kullman, EVP –
Finance, Administration, and Chief Financial Officer or
Anne-Marie Megela, Director,
Investor Relations
(724) 273-3400
investors@dcsg.com
SOURCE Dick's Sporting Goods, Inc.