Apparel and footwear retailer Genesco Inc has inked a deal to sell The Lids Sports Group for US$100m to FanzzLids Holdings, a holding company controlled and operated by affiliates of Ames Watson Capital.
The Nashville, Tennessee-based firm said it has entered into a definitive agreement with Ames Watson, the owner of Fanzz, a specialty retailer of officially licensed sports apparel.
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Meanwhile, sports licensing and e-commerce firm Fanatics Inc will make a minority investment in FanzzLids as part of a commercial arrangement connected with the deal.
The transaction is expected to be completed at the end of Genesco’s current fiscal year.
“We are pleased to have reached an agreement to sell the Lids Sports Group to a buyer with experience in the licensed sports industry,” says Genesco CEO Robert Dennis. “Under new ownership, the very talented team at Lids will continue to have the opportunity to realise 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 about $29m, will be used to repurchase shares of the company’s common stock.
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By GlobalDataIt has also announced that its board of directors has increased its existing authorisation to repurchase common stock to $125m. The number of shares to be repurchased and the manner and timing of purchases will be determined by Genesco’s management.
