Genesco has started to push its Hat World and Lids business north of the border with the acquisition of a 17 store chain called Cap Connection. The chain operates stores in Alberta, BC, and Ontario, and should serve as a good jumping off point for Genesco in the Canadian market.
The purchase price was approximately C$2.0 million ($1.5 million), subject to adjustment for closing current assets and the performance of the business during the first year under Genesco ownership.
Genesco President and CEO Hal N. Pennington, said that this acquisition is “an excellent opportunity to expand our recently acquired Hat World and Lids business into the Canadian market.”
Genesco does not expect the acquisition to affect its previously announced fiscal year guidance for sales to reach $1.1 billion and earnings per share to range from $1.74 to $1.80 per share.