Hat World acquired the assets of Impact Sports, a dealer of branded athletic and team products for college and high school teams, for a purchase price of $5.1 million plus assumed debt of $1.3 million funded from borrowings under the credit facility, according to the recently-filed form 10-K of its parent, Genesco, Inc. The company announced the acquisition in March but the purchase price was not disclosed.
The filing noted that Genesco allocated $4.1 million of the purchase price to goodwill. Finite-lived intangibles include $1.0 million for customer relationships and $0.2 million for non-compete agreements. The amortization of intangibles was $0.1 million for Fiscal 2009. The amortization of intangibles for Fiscal 2010 will be $0.3 million and will be $0.1 million for each of Fiscal 2011, 2012, 2013 and 2014. The company noted that goodwill related to Impact Sports is deductible for tax purposes.
Impact Sports is a team dealer, custom screen printer and embroidery operator based in Madison, WI, and targets colleges and universities, high schools, bookstores, corporations and youth organizations. The acquisition marked Genesco's first entry into the team dealer business.