Neiman Marcus names a new chief marketing officer and restructures staff to address the growing importance of e-commerce.
The purchase price is $215 million.
Redcats USA will cut its ties with The Sportsman’s Guide and The Golf Warehouse after six years of ownership.
Redcats, No. 34 in the 2012 Internet Retailer Top 500, this morning announced the sale of The Sportsman’s Guide and The Golf Warehouse to Northern Tool + Equipment Co. in a deal valued at $215 million.
More specific details on the deal weren’t released, but the transaction is subject to regulatory approval since Redcats is still listed as a discontinued operation of PPR SA, a publicly traded French retail conglomerate and No. 5 in the Internet Retailer Top 400 Europe.
PPR says it made the deal with Northern Tool as part of PPR’s ongoing effort to concentrate exclusively on its luxury and lifestyle brands such as Gucci, Bottega Veneta, Yves Saint Laurent, Puma and others. “The sale of the sports and leisure group of Redcats USA would constitute a further step forward in the transformation of PPR into a global leader in apparel and accessories within the luxury, sport and lifestyle sectors,” the company says.
The Sportsman’s Guide sells outdoors gear online as well as in one store in St. Paul, MN. The Golf Warehouse is a web-only retailer of golf clubs, supplies and apparel.
Northern Tool, which sells tools and related gear online, in its own network of 80 stores and by catalog, wants to diversify into the sporting goods and golf equipment market because both organizations sell to the same male audience.
The acquisition will give Northern Tool, No. 89 in the Top 500, nearly $1.5 billion in annual sales. Northern Tool, The Sportsman’s Guide and The Golf Warehouse will operate as separate brands, says Northern Tool president Chuck Albrecht. “We are very bullish about this milestone acquisition–it builds on our operational strength and synergies,” he says. “Furthermore, we were drawn to both companies being family-run institutions with strong management.”
Both Northern Tool and The Sportsman’s Guide/The Golf Warehouse organization expect to share some economies of scale and a similar shopping audience. “All the brands share a common target customer that Northern Tool + Equipment has marketed to very effectively for more than 30 years,” Albrecht says.