Collegiate Pacific has completed the acquisition of Orlando Team Sports. Founded in 1994, Orlando Team Sports is believed to be the largest and fastest-growing team sporting goods distributor in the state of Florida, covering the state from Jacksonville to Miami. The purchase price of approximately $3,000,000 plus the assumption of selected liabilities was made in a combination of cash, stock and notes.
Adam Blumenfeld, President of Collegiate Pacific, stated: “We are pleased to have concluded the OTS acquisition ahead of schedule. The quick closure is a testament to the clean operations and sound management of OTS. We are delighted to be bringing Michael McWeeney aboard as well as Rhanda Chinote. They will both serve as important members of our executive management team going forward.”
Mr. Blumenfeld continued: “We anticipate OTS will be an immediate contributor to sales and earnings, and to contribute more than $7 million in net sales to FY06 (starting July 1, 2005). We have already begun the training process with OTS sales personnel in relation to Collegiate Pacific’s proprietary equipment, and foresee incremental sales and income leverage as we integrate our full line of products. OTS provides Collegiate Pacific with an important team hub in the nation’s premiere year-round sports market of Florida. We intend to leverage the infrastructure and expertise of OTS to further expand distribution in this region.
“OTS fits Collegiate Pacific’s criteria of sound management, a profitable growing business, and geographic compatibility with our existing sales force. We continue to review a multitude of additional opportunities as we look to selectively deploy the more than $40 million in capital currently on-hand.”
