The Forzani Group and Nevada Bob's International have signed a letter of intent which contemplates Forzani acquiring the Canadian business of NBI. The completion of the transaction is conditional upon, among other things, the completion of due diligence by Forzani, the entering into of the formal legal documentation and the receipt of all necessary approvals, including the approval of the TSX Venture Exchange.
Bob Sartor, C.E.O. of Forzani, commented that, “The acquisition of the Canadian business of NBI, including the Canadian Nevada Bob's trade marks and related licensing agreements, will provide Forzani an excellent vehicle with which to expand its share of the Canadian golf business. Using our existing franchise business infrastructure, our global close out sourcing capacities, our private brand development abilities and combining these in a package that will include very strong unified advertising programs, we will be able to deliver a superior national franchised growth vehicle. The transaction will add approximately $30 million to Forzani's system wide sales and is expected to be immediately accretive.”
Kevin Baker, C.E.O. of NBI, commented that, “The acquisition of the Canadian business of NBI by Forzani will accelerate the expansion of Nevada Bob's retail presence in Canada and give the Canadian Nevada Bob's system access to numerous lines of products under the control of Forzani. This transaction will allow NBI to concentrate on its U.S. and International business and expand its presence and product lines, especially in the U.S.”
