PNC Bank, N.A. announced the closing of a $140 million senior secured credit facility to support Maryland-based Ames Watson, LLC’s acquisition of Lids Sports Group (LSG).
PNC Bank, N.A., served as administrative agent.
Founded in 1992, Indianapolis-based LSG is the largest omni-channel licensed sports retailer in North America, selling fan and fashion-oriented licensed sports headwear and apparel across the U.S., Canada, and Puerto Rico through 1,159 retail locations. The seller was Genesco.
Ames Watson is a privately held diversified operating company that purchases, transforms and partners with middle market companies to create long term value.
“PNC did a sensational job understanding the deal and working with us on an aggressive timeline to get the deal done,” said Lawrence Berger, co-founder and partner at Ames Watson. “We are thrilled to have them as partners on Lids.”
Loan proceeds will be used to partially finance the acquisition, fund capital expenditures, and provide for ongoing working capital needs. Treasury management products and services are included in the transaction.
“The LSG financing further demonstrates PNC’s commitment and ability to provide customized financing solutions to national retailers,” said Marc S. Price, group head of PNC Business Credit Retail Finance. “The depth and breadth of PNC’s financial products and services allows retailers, large and small, to realize their unique financial goals as the retail industry continues to change and evolve.”
Ames Watson is also the owner of the Fanzz fan apparel chain, which it acquired in February 2018. At the time of Ames Watson Capital’s February acquisition, Fanzz, based in Salt Lake City, had 120 stores under the Fanzz and Just Sports nameplates in 22 states. Ames Watson Capital will be taking on approximately 1,100 more locations with its acquisition of Lids.
Fanatics Inc. will make a minority investment in FanzzLids Holdings in connection with entering into a commercial arrangement with that holding company and is expected to help manage online operations and offer support with its vertical-manufacturing capabilities.
