Global Sports, Inc. Announces Sale of Off Price & Action Sports Division
GLOBAL SPORTS, INC. (NASDAQ: GSPT) announced today that it has signed a definitive agreement to sell its Off Price & Action Sports Division to a group led by James Salter, CEO of the Off Price & Action Sports Division, and Kenneth Finklestein, president of the Off Price & Action Sports Division, for aggregate consideration valued at approximately $44 million, including approximately $6 million in cash, $10 million in subordinated notes, and the assumption of approximately $18 million of certain liabilities of Global Sports, Inc. In addition, Global Sports, Inc. is retaining certain accounts receivable related to the Off Price and Action Sports Division. The Company expects the transaction to close in its entirety following the satisfaction of certain conditions, including the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, if applicable, and the approval of the transaction by the shareholders of Global Sports, Inc., which is expected to occur in the 4th quarter of 1999.
Global Sports, Inc. is divesting the Off Price and Action Sports Division as part of its plan to focus exclusively on its e-Tail operations. The results of the Off Price and Action Sports Division have been accounted for as discontinued operations since the second quarter of 1999, when the Company made the decision to sell the division.
Michael Rubin, chairman and CEO of Global Sports, Inc., commented on the sale, “We are pleased to announce an agreement to sell our Off Price & Action Sports Division within our internally established time goal. The sale of this division will allow us to strengthen our commitment and focus on the growth of our e-Tail operations.”
Global Sports, Inc. (http://www.GS-Interactive.com) is an e-Commerce company that has entered into exclusive agreements to operate the Internet businesses of multiple sporting goods retailers, including The Sports Authority through an e-Commerce partnership agreement, and The Athlete’s Foot, Sport Chalet, MC Sports, and Sports and Recreation through e-Commerce outsourcing contracts. On July 26, 1999 SOFTBANK Capital Partners LP invested $80 million into Global Sports, Inc., which represents approximately 30% of the company’s currently outstanding shares. Global Sports, Inc. shares are included in the Russell 2000 index.
Contact:
Michael R. Conn
Senior Vice President Strategic Development
(610) 768-0900
Connm@Globalsportsinc.com
