Hibbett Sports has acquired City Gear, another retailer of sporting products. Hibbett will pay $88 million in cash upon completion, with an additional $25 million due over the next two years based on City Gear's achievement of certain performance targets.
With its headquarters in Birmingham, Alabama, Hibbett City Gear has 1,059 stores across 35 states, primarily in the South and West. The purchase of City Gear, which has 135 stores across 15 states, gives The Hibbett a stronger foothold in the Midwest.
Each company has issued a statement saying that there is "not considerable" overlap between their respective retail locations, leaving space for growth.
Gear for the city stands for
City Gear is a major player in the market for fashion-forward consumers; by carrying it, we will expand our client and have substantial growth potential. Sports Obtaining a discount at hibbett promo code.
We are SGB MEDIA.
According to Rosenthal's comments to SGB Media, Hibbett city gear will provide the operational expertise, but the company will also rely on the social media and marketing experience provided by City Gear. He also lauded City Gear for its community-building initiatives, such sneaker drops and back-to-school bashes with free barber cuts.
EXPENDITURES FOR THE CURRENT FINANCIAL YEAR
City Gear had almost $190 million in sales during their most recent fiscal year, which ended in February of 2018. According to the company, same-store sales have been consistently in the "mid-single digit range" over the past three years.
Rosenthal made the point that the two companies had many similarities, including the fact that they both manufacture well-known brands like Nike, Jordan, Adidas, Puma, Converse, Fila, and others.
GEAR FOR SPORTS
City Gear will maintain its Memphis, Tennessee headquarters under the leadership of current City Gear executives as a wholly owned subsidiary of Hibbett city gear Sporting Goods, Inc.
THE PURCHASE OF CITY GEAR BY HIBBETT SPORTS
US-based sports goods manufacturer and retailer Hibbett Sports has agreed to purchase City Gear for $88 million in cash.
A legally binding agreement between the two firms stipulates that the Hibbett will provide an additional $25m over the following two years if specific performance requirements are met. The remaining $88 million will come from available credit and cash on hand at Hibbett city gear.
City Gear's Chief Executive Officer
City Gear's CEO, Mike Longo, is excited to become part of the Hibbett family and add to their rich history of success.
read more : mysavinghub
the firm said.
Assuming customary closing conditions are met, closure is expected to take place in early December.
PRODUCT SPREADS OF WELL-KNOWN COMPANIES
This is all a part of our strategy to bring our best-selling products to more people in more places.
The merger makes Hibbett city gear a subset of Hibbett Sporting Goods while maintaining its Memphis, Tennessee headquarters. Company leadership will remain unchanged.
VERY PLEASED TO REVEAL
Jeff Rosenthal, CEO of Hibbett Sports, commented, "We are thrilled and excited to announce this purchase, which delivers us enhanced scale in the athletic specialty market and is an extension of our goal to deliver high demand, branded merchandise to underserved regions."
We anticipate a substantial increase in both clientele and revenue as a result of our partnership with City Gear, which will enable us to reach a new audience of trend-conscious consumers.
The American-based retailer City Gear presently operates 135 stores across 15 states from its headquarters in the USA. Both businesses stock products from recognised brands including Nike and Jordan.
HIBBETT SPORTS COMPLETELY ACQUIRED CITY GEAR TODAY.
Client Type Examples with a Listed Company
For Hibbett Sports, Inc., we negotiated the acquisition of City Gear, a specialty retailer of sportswear, accessories, and footwear, for $113 million (Nasdaq: HIBB). Hibbett Sports will benefit from City Gear's increased product selection and customer accessibility as a completely owned subsidiary.
Hibbett Sports is the ultimate destination for all your sportswear needs, with over a thousand stores around the country. Hibbett city gear is a one-of-a-kind sportswear shop.
STRICTLY OPTIONAL BUSINESS TRANSACTIONS
This deal was nominated for two awards at the 18th Annual M&A Advisor Awards: "Consumer Discretionary Deal of the Year ($50MM-$100MM)" and "Corporate/Strategic Deal of the Year ($75MM-$100MM). Bass, Berry & Sims had a great year at this year's M&A Advisor Awards, with no less than six transactions being nominated across all nine categories.
In 1945, Hibbett | City Gear was established. The company has flourished for nearly 80 years, with over 1,100 Hibbett and City Gear stores. Hibbett is proud to stock footwear, apparel, and accessories from top brands like Nike, Jordan, Adidas, Under Armour, PUMA, and New Balance, and to provide convenient store locations and great personalised customer service. What you'll find at Hibbett are the latest fashions, must-have new arrivals, and carefully curated pieces from throughout the aesthetic spectrum.
The approach required Hibbett to improve inventory accuracy and store selection. The Hibbett hoped that RFID would help them establish a streamlined supply chain with more visibility into inventory levels.
To achieve their branding goals, Hibbett enlisted the aid of Columbus Consulting. For almost two decades, The Columbus Consulting has helped businesses like Hibbett. The consultants were all senior level brand managers at various retail establishments.
Some years ago, Columbus partnered with Hibbett to manage their Store and Omni-channel rollout. It had a thorough understanding of Hibbett's infrastructure, processes, and personnel. Success was achieved through the combination of in-house expertise and external resources.