The Finish Line, Inc. has closed on the acquisition, for $12 million in cash plus a potential earnout of up to a maximum of $6 million in cash, of all of the outstanding capital stock of The Hang Up Shoppes, Inc., which does business under the trade name Man Alive.
Man Alive is a mall-based hip-hop fashion retailer offering men’s and ladies name brand fashions from the industry’s leading designers. The transaction closed effective the close of business on January 29, 2005.
It is anticipated that Man Alive will achieve sales of approximately $30 million for the fiscal year ended January 29, 2005. The Finish Line believes that the transaction will be slightly accretive to diluted earnings per share for The Finish Line’s fiscal year ending February 25, 2006.
Mr. Alan H. Cohen, Finish Line’s Chairman and Chief Executive Officer, stated, “Man Alive provides us a platform from which to enter a new segment of the market. We believe this segment offers us significant long term growth opportunities. In addition to the 37 existing Man Alive stores, we expect to open 10 to 15 new stores in our upcoming fiscal year. We believe that the growth potential for this concept can, over time, exceed 400 stores. Our strong balance sheet and superior access to capital, as well as our operational and marketing expertise, combined with Man Alive’s strong merchandise philosophy and highly compelling opportunity for store expansion, should provide enhanced value for our shareholders.”
