Collegiate Pacific Inc. announced the completion of its acquisition of Salkeld Team Sports of Bourbonnais, IL. Salkeld Team Sports is a leading distributor of team sporting goods products in the state of Illinois with annual revenues in excess of $7,000,000. The company possesses a road sales force of approximately 15 sales professionals — bringing Collegiate Pacific's total national sales force count to approximately 170.
Adam Blumenfeld, president of Collegiate Pacific, stated: “We are pleased to bring Salkeld Team Sports, and the seasoned management team of Al Messier and Dan Salkeld into the Collegiate Pacific family. Salkeld Sports offers us penetration into the densely populated Chicago-land markets and continues our build out of geographic presence in the Midwestern USA. We believe the bundling of Collegiate Pacific's proprietary equipment with the well respected brand named team uniforms offered by Salkeld and our other road sales professionals creates an optimal one stop shop solution for institutions in the United States. We continue to review a number of opportunities as we seek to expand our geographic coverage and product lines, and to deploy the nearly $40 million in cash and up to $20 million in available credit for the benefit of shareholders.
“While we believe Salkeld Team Sports will be approximately 4 cents accretive to FY06 EPS on its own merits, as of this date the valuation of potential one time, non cash, short term charges related to the intangibles of the acquired Company, in accord with the new FASB-141 rulings, has not been completed. Thus, we are raising FY06 guidance at this time by 2 cents to a range of 52 – 58 cents from the previous range of 50 to 56 cents. We believe the transaction will offer far greater EPS accretion in FY07. We do not expect Salkeld to contribute to EPS in these remaining few weeks of FY05 which ends June 30, 2005.”