World Footwear

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Genesco sells struggling Lids

Dec 14, 2018 United States
Genesco sells struggling Lids
The Nashville-based group has announced it reached an agreement to sell Lids Sports Group. Payment in cash should amount to 100 million US dollars
Genesco announced today that the company has entered into a definitive agreement for the sale of the Lids Sports Group for 100 million US dollars in cash subject to adjustment for a normalized level of working capital to FanzzLids Holdings, a holding company controlled and operated by affiliates of Ames Watson Capital, LLC.  Ames Watson is the owner of Fanzz, a specialty retailer of officially licensed sports apparel. Fanatics Inc., a leader in sports licensing and ecommerce, will make a minority investment in FanzzLids Holdings in connection with entering into a commercial arrangement with that holding company. The transaction, which is subject to customary closing conditions, is currently 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. Under new ownership, the very talented team at Lids will continue to have the opportunity to realize 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", commented Robert J. Dennis, Genesco Chairman, President and Chief Executive Officer.

Genesco expects that cash proceeds net of taxes and transaction-related costs, including a tax benefit estimated at approximately 29 million US dollars, will be used to repurchase shares of the company's common stock. Genesco also announced that its board of directors has increased the existing authorization to repurchase common stock to 125 million US dollars. The number of shares to be repurchased and the manner and timing of purchases will be determined by the company's management.

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