Genesco crosses The Finish Line
Having rejected a pair of earlier bids, footwear and apparel retailer Genesco Inc. now has a preliminary deal to merge with multi-channel retailer The Finish Line Inc. in a transaction valued at $1.5 billion.
Genesco, No. 325 in the Internet Retailer Top 500 Guide, earlier rejected bids from Foot Locker Inc., 44 in the Internet Retailer Top 500 Guide. But on Monday both the Genesco and The Finish Line boards approved a definitive merger agreement under which The Finish Line will acquire all of the outstanding common shares of Genesco for $54.50 per share in cash. The transaction is expected to be complete by fall.
The Finish Line expects the transaction to be funded through a combination of approximately $11 million in cash on hand and up to $1.6 billion in planned financing from UBS Securities LLC.
The Finish Line, No. 154 in the Internet Retailer Top 500 Guide, is a multi-channel retailer of athletic footwear, apparel and accessories. It is acquiring Genesco in a bid to become a more specialized apparel merchant. "With Genesco, we will enhance our strength in athletics and gain an immediate presence in new and growing retail categories to further diversify our business and deepen our vendor relationships,” says The Finish Line CEO Alan H. Cohen.
The Finish Line, which plans to make Genesco a subsidiary, will pick up a number of niche e-commerce sites once the deal closes. Genesco sells footwear, headwear and accessories in more than 2,000 stores in the United States and Canada, principally under the names Journeys, Journeys Kidz, Shi by Journeys, Johnston & Murphy, Underground Station, Hatworld, Lids, Hat Shack, Hat Zone, Cap Factory, Head Quarters and Cap Connection. Its web sites are Journeys.com, JourneysKidz.com, UndergroundStation.com, JohnstonMurphy.com, Lids.com, HatWorld.com and Lidscyo.com.
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