Global Sports, Inc. Announces Agreement to Sell Branded Division
GLOBAL SPORTS, INC. (NASDAQ: GSPT), an Internet company that develops and operates the online businesses of leading sporting goods retailers, today announced that it has agreed to sell its Branded Division to American Sporting Goods Corporation. In addition to acquiring the Branded Division assets (other than accounts receivable), American Sporting Goods has agreed to assume certain liabilities of the Division. The company estimates that the purchase price will be approximately $11 million, subject to adjustment based on the value of the assets acquired at closing. In addition, Global is retaining the accounts receivable of the Branded Division, which currently approximate $8.5 million. Global’s Branded Division consists of the Ryka, Yukon and Apex footwear brands. The transaction is expected to close by the end of 1999.
Global Sports, Inc. is divesting the Branded Division as part of its previously announced plan to focus exclusively on its e-commerce operations. The results of the Branded Division have been accounted for as discontinued operations since the second quarter of 1999, when Global made the decision to sell the Division.
Michael Rubin, chairman and CEO of Global Sports, Inc., commented, “The sale of the Branded Division coupled with the previously announced agreement to sell our Off-price and Action Sports Division completes the company’s process of divesting its legacy businesses. Global Sports is now positioned as a pure-play e-commerce sporting goods company and is fully focused on its goal of achieving the leading position in this category.”
Global Sports, Inc. (http://www.globalsports.com) is an e-Tail company that operates under exclusive long-term agreements the Internet businesses of leading sporting goods retailers, including The Sports Authority (http://www.thesportsauthority.com), The Athlete’s Foot (http://www.theathletesfoot.com), Sport Chalet (http://www.sportchalet.com), MC Sports (http://www.mcsports.com) and Dunham’s Sports (http://www.dunhamssports.com). On July 23, 1999 SOFTBANK Capital Partners LP invested $80 million into Global Sports, Inc. Global Sports, Inc. shares are included in the Russell 2000 index.
American Sporting Goods Corporation, of Irvine California, is a privately held company that produces branded footwear under the Avia, Nevados and Turntec brands.
Contact:
Media:
Alexander Goldsmith
Hill and Knowlton
(212) 885-0467
agoldsmi@hillandknowlton.com
Investor:
Michael R. Conn
Senior Vice President Strategic Development
Global Sports, Inc.
(610) 491-7000
connm@globalsportsinc.com
