Collegiate Pacific has executed a definitive agreement to acquire Tomark Sports of Corona, Ca. Under the terms of the merger agreement with Tomark, Collegiate Pacific, through a wholly-owned subsidiary, will acquire all of the shares of Tomark, Inc. in exchange for a combination of cash, shares of Collegiate Pacific common stock and purchase notes.
The transaction is subject to the satisfaction of customary closing conditions. The closing is expected to take place in January 2004.
Michael Blumenfeld, CEO of Collegiate Pacific, stated “The combination of Tomark and Collegiate Pacific creates one of the largest institutional suppliers of baseball equipment in the United States. With the definitive agreement now executed, we will go to work immediately to leverage the operating and marketing assets of Tomark and expect substantial contributions in the months and years ahead from this combination. Tomark is regarded not only as one of the premiere national catalogers of baseball and softball equipment to the institutional markets, but also as a dominant supplier and installer of sports equipment in their home state of California.”
“Tomark has augmented its product line with more than 300 Collegiate Pacific items for the coming season, and the Collegiate Pacific family of catalogs have inherited a similar quantity of new products from Tomark. We are excited to introduce this enhanced line-up to our respective customer bases – totaling 75,000 in the aggregate – and the more than 200,000 prospects in the institutional and team sports marketplace.”
Mr. Blumenfeld continued: “We anticipate Tomark will contribute an estimated $700,000 in operating income between Jan and June 2004. We expect that the contributions for FY2005 (commencing July 1,2004) will be materially higher. We currently anticipate closing the recently announced Kessler Sports acquisition in March 2004. The combination of these two acquisitions coupled with our internal growth is projected to produce annual revenues in FY2004 of approximately $38 million (up from $21 million in FY2003) and revenues of $76 million in FY2005(commencing July 1, 2004) with a substantial increase in profitability. We are preparing a more detailed analysis and guidance which will be released shortly.”
