NASHVILLE, Tenn. – December 14, 2018 – Genesco Inc. announced today that the company has entered into a definitive agreement for the sale of the Lids Sports Group for $100 million in cash subject to adjustment for a normalized level of working capital to FanzzLids Holdings, a holding company controlled and operated by affiliates of Ames Watson Capital LLC. Ames Watson is the owner of Fanzz, a specialty retailer of officially licensed sports apparel. Fanatics Inc., a leader in sports licensing and ecommerce, will make a minority investment in FanzzLids Holdings in connection with entering into a commercial arrangement with that holding company. The transaction, which is subject to customary closing conditions, is currently expected to be completed at the end of Genesco’s current fiscal year.
Genesco Chairman, President and CEO Robert J. Dennis said, “We are pleased to have reached an agreement to sell the Lids Sports Group to a buyer with experience in the licensed sports industry. Under new ownership, the very talented team at Lids will continue to have the opportunity to realize the potential in this business. We look forward to closing the transaction and devoting the full attention of Genesco’s management team to the opportunities we see in a footwear-focused company.”
Genesco expects that cash proceeds net of taxes and transaction-related costs, including a tax benefit estimated at approximately $29 million, will be used to repurchase shares of the company’s common stock.
The company also announced that its board of directors has increased the Company’s existing authorization to repurchase common stock to $125 million. The number of shares to be repurchased and the manner and timing of purchases will be determined by the company’s management.
PJ SOLOMON served as financial advisor and Bass, Berry & Sims PLC acted as legal advisor to Genesco with respect to the transaction.
Posted December 14, 2018
Source: Genesco Inc.