Collegiate Pacific announced that Adam Blumenfeld, the company's Chief Executive Officer, will succeed Michael J. Blumenfeld as the Chairman of the Board, effective July 1, 2007. Michael Blumenfeld will be stepping down from the Board as previously planned, but will continue to participate with the Company as Director of Corporate Development.
In addition to the conclusion of Michael Blumenfeld's service on the Board, the company received notice today that funds controlled by Carlson Capital, L.P., a $3 billion multi-strategy investment firm based in Dallas, TX, have entered into a binding agreement to purchase the entirety of Michael Blumenfeld's common stock ownership position in Collegiate Pacific – approximately 1.467 million shares – for $9.25 per share.
Outgoing Chairman Michael Blumenfeld commented: “I am extremely proud of the organization we have built over the last 10 years at Collegiate Pacific, and I believe the Company has a very bright future ahead of itself. As the founder of this Company, and having worked in the industry for nearly 35 years, stepping down is never easy, but I believe it is best to make a clean financial break as I close the book on this chapter of my life. In selling my shares, I considered not only the absolute price but as importantly the quality and character of the buyer. In the end I believe Carlson Capital will be a terrific, stable, and committed shareholder to the Company.”
William M. Lockhart, Principal and Portfolio Manager of Carlson Capital L.P., stated: “We are excited to have purchased Michael's shares in Collegiate Pacific and wish him well in his future endeavors. Our firm has followed the activities and growth of the Company for a long time, and Michael's departure represents a rare opportunity for our funds to establish a meaningful stake in the business. We believe the next several years will demonstrate the revenue and profit opportunities available from continuing the merger integration work at Collegiate Pacific, and driving organic revenue growth over an increasingly streamlined, customer-focused and efficient organization. We have great faith in Management's ability to execute its operating plans and look forward to the years ahead.”
The company also stated today that it had hired Mr. John Pitts, effective July 2, 2007, to join Collegiate Pacific as Senior Vice President – Finance, with the anticipation that Mr. Pitts will succeed Mr. William Estill as Chief Financial Officer upon his currently expected retirement from the Company on or about September 30, 2007. Mr. Pitts was formerly the Chief Financial Officer of Horizon Healthcare.
Adam Blumenfeld, CEO, stated: “We appreciate and thank Bill for his many years of contribution and loyal service to the Company and look forward to a smooth transition between now and September 30, 2007. We welcome John Pitts to the organization and look to benefit from his proven track record of success both internally, as it relates to strategic planning and operational improvements, and externally as it relates to communication with existing and potential investors.”
Finally, the Company said today that Robert W. Hampton, a Director of the Company, informed the Board he does not currently plan to stand for re-election to the Board of Directors at the Annual Meeting of Shareholders in December of 2007.
Mr. Hampton stated: “I have greatly enjoyed my time and involvement with Michael, Adam and the Company as a Board member over the years, and am happy to leave the Company in the competent hands of the existing management team and Board of Directors.”
