The Forzani Group has inked a deal to acquire National Gym Clothing Limited, a chain of athletic specialty stores in Ontario operating as National Sports. The deal will result in 19 additional stores in Ontario and roughly 486,000 square feet of retail space. This is expected to add $80 million to Forzanis annual revenues. Terms of the deal were kept confidential at the request of the vendor.
National Sports is headquartered in Uxbridge, Ontario. While there was no word on changes in personnel, FGL plans on maintaining separate offices in order to “maintain Nationals positioning and identity.” The acquisition will be financed through Forzanis existing and some expanded credit facilities. Completion of the transaction will take place once all necessary regulatory approvals are received and due diligence is completed.
Bob Sartor, Chief Executive Officer of Forzani said that this deal will increase FGLs market share in the Ontario market by four percentage points, giving the retailer 16% of the areas sporting goods sales.
