Collegiate Pacific has executed a Letter of Intent to acquire Orlando Team Sports (OTS). 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. Terms of the transaction were not disclosed. Closing is anticipated within 30 days.
In discussing the transaction, Michael Blumenfeld, CEO of Collegiate Pacific, stated: “OTS brings to Collegiate Pacific a fast-growing strategic hub in the lucrative year-round sports market of Florida. They have a proven and profitable history with seasoned management and a dedicated work force that will be a strong addition to our expansion efforts. We are excited that Michael McWeeney, President of OTS, will remain to manage the business and become an important member of Collegiate Pacific’s executive management team.
“We intend to deploy the recently infused $40 million of new capital in a manner that will create more than $100 million in new revenues, and a significant expansion of profitability. The acquisition of OTS is the first step towards this goal. OTS meets our strict criteria of strong top line growth; geographic compatibility with our existing sales force; and the ability to contribute to revenues and earnings on an immediate basis.”
Adam Blumenfeld, President of Collegiate Pacific, stated: “The completion of OTS will take our national network of salesmen to approximately 140 road sales professionals. As well, OTS geographically connects our Kessler and Dixie territories and provides a contiguous connection from the Midwest to the East Coast. We are excited to be expanding our relationships with key industry vendors in this territory, and to be introducing the OTS sales force to Collegiate Pacific’s family of 3,000+ proprietary equipment products. The infusion of this product will commence immediately upon closing, and serve to further expand the operating leverage of OTS.”