Investment firm Kohlberg Kravis Roberts & Co L.P. (KKR) and Academy Sports + Outdoors have entered into a definitive purchase agreement for KKR to acquire the sports retailer. Financial terms of the deal were not disclosed.
Katy, Texas-based Academy Sports + Outdoors offers a broad selection of products at low prices. The sports goods discount store chain has 131 locations throughout 11 states in the Southeast U.S. The company generated over $2.7 billion in revenue in 2010.
The company was started by Max Gochman when he opened Academy Tire Shop in 1938 in San Antonio, Texas. It is currently owned by his grandson Chairman and CEO David Gochman. The Gochman family will retain a minority ownership stake in the retailer after the deal.
Rodney Faldyn, president of Academy Sports + Outdoors, said, "This transaction with KKR will help accelerate Academy's continued growth and provide even greater flexibility to achieve our strategic goals."
When the transaction is completed, Faldyn will continue to serve as President of the company and will also assume additional responsibilities of Chief Executive Officer. The deal is expected to close in six to eight weeks, subject to customary closing conditions.
Goldman, Sachs & Co. is acting as financial advisor to Academy Sports + Outdoors. Wachtell, Lipton, Rosen & Katz LLP and Fulbright & Jaworski LLP are its legal counsel.
Morgan Stanley, Credit Suisse AG and Barclays Plc. served as financial advisor to KKR and Simpson Thacher & Bartlett LLP was its legal counsel.
KKR settled on Friday at $17.12, up from the prior close of $17, on 1.06 million shares.
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