As a part of the acquisition of Galyan's Trading Company, Inc. by Dick's Sporting Goods, Limited Brands' stake in Galyans will be sold at the transaction price of $16.75 per share. Limited Brands owns 3.9 million shares, or 22%, of Galyans common stock.
Upon completion of the transaction, Limited Brands expects to receive gross proceeds of approximately $65 million, and recognize a pre-tax gain of approximately $18 million, which will be reported as a gain on the sale of investee stock and excluded from earnings per share as an adjusted item. It is anticipated that the transaction will be completed by October 2004, subject to Hart Scott Rodino completion and other customary closing conditions.
