Global Sports Completes Sale of Off Price & Action Sports Divison
GLOBAL SPORTS, INC. (NASDAQ: GSPT), a leading developer and operator of e-commerce sporting goods businesses, announced today that it has completed the sale of its Off Price & Action Sports Division to a group led by the Management of the Division. The company had previously announced on September 27, 1999 that it had reached a definitive agreement to sell the Off Price & Action Sports Division to the Management group. Global Sports received cash proceeds of $13.2 million at closing.
During the second quarter of 1999, Global Sports announced its intention to divest the Off Price & Action Sports Division as part of its plan to focus exclusively on its e-commerce operations. The results of the Off Price & Action Sports Division have been accounted for as discontinued operations since that time. The completion of this sale, in conjunction with the previously announced closing of the sale of the company’s Branded Division brings to conclusion the process of divesting Global Sports legacy businesses.
Michael Rubin, Chairman and CEO of Global Sports, commented, This is an important milestone for Global Sports. With our legacy businesses fully divested we are able to focus all of our energy on our e-commerce operations. Furthermore, with the cash proceeds from this transaction, we have now raised more than $43 million of additional capital this quarter.
Global Sports, Inc. (Nasdaq: GSPT - news; http://www.globalsports.com) is a leading developer and operator of e-commerce sporting goods businesses. Global Sports develops and operates the e-commerce sporting goods businesses of specialty retailers, general merchandisers, Internet companies and media companies under exclusive long-term agreements. The Company’s current partners include BlueLight.com (http://www.bluelight.com)—the exclusive e-commerce partner for Kmart, Broadband Sports (http://www.broadbandsports.com) and its AthletesDirect subsidiary (http://www.athletesdirect.com), Dunham’s Sports (http://www.dunhamssports.com), Healtheon/WebMD (http://store.webmd.com), MC Sports (http://www.mcsports.com), Oshman’s Sporting Goods (http://www.oshmans.com), Sport Chalet (http://www.sportchalet.com), The Athlete’s Foot (http://www.theathletesfoot.com), and The Sports Authority (http://www.thesportsauthority.com).
Contact:
Media Contact:
Dana Stein Grosser
Director of Corporate Communications
(610) 491-7000
grosserd@globalsports.com
Investor Contact:
Jordan Copland
Executive Vice President & Chief Financial Officer
(610) 491-7000
coplandj@globalsports.com
