NEW YORK (Thomson Financial) - Dick's Sporting Goods said Monday that it will buy privately-held Chick's Sporting Goods in a cash and debt for stock deal that values Chick's at about $71 million. The deal is expected to close on or before Dec. 31.
Dick's said it will pay about $40 million in cash and assume about $31 million in Chick's debt for Chick's outstanding equity. The Pittsburgh, Pa.-based sporting goods retailer will use its existing credit facility to finance the deal.
Dick's management expects the acquisition to be 'marginally accretive' to fiscal 2008 earnings, as Chick's profitability is partially offset by interest expense, acquisition and integration costs. Dick's expects the acquisition, aimed at boosting Dick's presence in the Southern and California markets, to be neutral to earnings for the rest of fiscal 2007. Michelle Rama mr/tk1 COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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