Foot Locker makes a play for Genesco, owner of chains of hat stores
Foot Locker Inc., a New York-based specialty athletic retailer, has made a bid to acquire Genesco Inc., operators of the Hat World and Lids chains, for $46 a share. The total cost would be $1.2 billion.
In addition to its chain of 4,000 stores, Foot Locker sells online at FooLocker.com and other variations of the Foot Locker brand, as well as at EastBay.com, Footaction.com and ChampsSports.com. Foot Locker is No. 44 in the Internet Retailer Top 500 Guide. Genesco sells at 600 Lids, Hat World, Hat Zone, Head Quarters and Cap Connection stores and online at Lids.com, No. 331 in the Internet Retailer Top 500 Guide.
Foot Locker made its initial bid on April 4 and reiterated its offer in a letter to Genesco yesterday after not receiving a reply to the April 4 letter, Foot Locker says.
“The Company`s Board of Directors intends to consider the proposal, with the assistance of its financial advisor, Goldman, Sachs & Co., and expects to respond in due course,” Genesco said in a statement.
Foot Locker’s $46 a share bid represents a premium of 25% over the prior year’s average stock price. Mid-day price of Genesco’s stock today was $49.57.
FootLocker.com’s Tim Wolfe, web applications manager, is speaking at Internet Retailer Conference & Exhibition, June 4-7 in San Jose, in a Site Design Workshop session June 7 entitled Search & Destroy: Removing Obstacles to Site Effectiveness.
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