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Hibbett Sports to Acquire City Gear

Hibbett Sports is getting into the acquisition game.
The Birmingham, Ala.-based athletic specialty retailer announced today that it has signed a definitive agreement to acquire Memphis, Tenn.-based City Gear, a regional specialty retailer of athletic footwear, apparel and accessories.
Hibbett agreed to a pay $88 million in cash at closing — and the potential for up to $25 million in additional consideration paid over the next two years — to snap up the company with 135 stores in 15 states. (The additional $25 million is subject to certain performance-based targets.)
City Gear will operate as a subsidiary of Hibbett Sporting Goods, maintaining its Memphis headquarters and will also continue to be led by existing members of its senior management team, Hibbett said in statement.
For the last fiscal year ended Feb. 4, privately-held City Gear reported total revenue of $190 million and, for the past three years, its same-store sales have averaged in the mid-single digit range.
We are pleased and excited to announce this acquisition, which provides substantially greater scale in the athletic specialty market and is an extension of our strategy to provide high demand, branded products to underserved markets,” said Hibbett president and CEO Jeff Rosenthal. “City Gear represents a key brand with the fashion-forward consumer and

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Via:: http://footwearnews.com/2018/business/mergers-acquisitions/hibbett-sports-acquires-city-gear-1202701166/