This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
May 8, 2013 /PRNewswire/ -- Foot Locker, Inc. (NYSE: FL), the
New York-based specialty athletic retailer, announced today that it has signed a definitive agreement to acquire Runners Point Warenhandelsges. mbH ("RPG"), a specialty athletic store and online retailer based in Recklinghausen,
Germany, for total cash consideration of
72 million euros (approximately
$94 million). RPG is currently majority owned by the private equity firm
HANNOVER Finanz. The Company's Chief Executive Office, Otto Hurler, and Chief Financial Officer,
Harald Wittig own the balance of the Company. Both Mr. Hurler and Mr. Wittig, along with other members of senior management, will remain with the Company post-acquisition. The transaction is subject to review by merger control authorities in
RPG has a leading position in the German athletic retail market, operating more than 200 stores --- with its most prominent banners being Runners Point and Sidestep
--- as well as an online subsidiary, Tredex. RPG previously announced sales of
197 million euros (
$254 million) for calendar year 2012. Most of the stores are in
Germany, although there are also Runners Point and Sidestep stores in
Austria, and Switzerland. While most of the stores are owned and operated by RPG, 28 of the stores are operated by franchisees. The purchase price will be allocated between the sellers and RPG's primary creditors, delivering to Foot Locker, Inc. an entity which is substantially debt-free.
"We are excited to be adding Runners Point, a fast-growing, multi-format and multi-channel business, to our already-strong European operations," said
Ken C. Hicks, Chairman and Chief Executive Officer of Foot Locker, Inc. "This acquisition will enhance our position in
Germany, the strongest economy in
Europe, and also provide us with additional banners to further diversify and expand our European business. We also intend to leverage Tredex's strong digital capabilities to accelerate growth in our own developing European e-commerce business."
"Our association with Foot Locker will significantly enhance the Runners Point team's ability to capitalize on the growth strategies we have been actively pursuing in recent years," said Mr. Hurler. "We look forward to working closely together to maximize the performance of our business as part of one of the world's leading specialty athletic retailers."