G.I. Joes Sports & Auto Stores has received $11.5 million in equity financing through a deal inked last week with Nogales Investors, a Los Angeles-based private equity firm. The bulk of the financing will be used to finance expansion in the Northwest, with the remainder will be used to redeem preferred stock from a group of original investors.
President and CEO Norm Daniels said the deal will enable the company to finance more rapid growth as well as defending its market share in its current markets. He did not reveal Nogales stake in the company based on the equity investment.
Nogales Investors is a private equity firm that manages capital for some of the largest institutional investors in the world and generally makes investments in the $5 million to $20 million range in low tech industries. Nogales prefers to invest in small- to medium-sized businesses with growth opportunities and experienced, highly qualified management.
The cash infusion complements G.I. Joes existing $37.5 million revolving credit agreement with Wells Fargo Retail Finance that is in place through 2008.
G.I. Joes had sales of over $185 million in 2003 and is expected to exceed $200 million this year.