RSG Snaps Up Boulder Running Co.

Running Specialty Group (RSG), the joint partnership between The Finish Line and Gart Capital Partners, last week acquired one of the crown jewels of the U.S. run specialty channel, Boulder Running Company. Terms were not disclosed.

In addition to the flagship location in Boulder, the acquisition includes the Littleton and Colorado Springs locations. The addition bring RSGs store count to 38, located primarily in the Northeast, Virginia, Florida, Indianapolis, Kentucky, Texas and now, Colorado. The transaction also includes the e-commerce site at www.boulderrunningcompany.com.

Opened in 1996 by co-owners and running legends Johnny Halberstadt and Mark Plaatjes, South African émigrés, the business is considered one of the top running specialty operations in the country. The flagship store on Pearl Street in Boulder was the first store in the U.S. to implement free video gait analysis to help runners select the right shoe model. BRC is consistently ranked by local publications as the best running store in Denver and Boulder and has been repeatedly ranked among the top running stores in the U.S. by the Independent Running Retailers of America (IRRA), including the number one ranking in 2006.

Current plans are for Plaatjes to continue assisting with the management of BRC while Halberstadt will stay through a transition period and then move into a consulting role. All other onsite staff will remain. RSG plans to add more BRC locations in metro Denver and possibly other markets based on the broad appeal of the name and the stores national reputation.

Teaming up with the proven expertise and resources offered by the Running Specialty Group will enable us to continue growing and thriving while concentrating even more on providing passionate customer service, says Halberstadt.

In Motion Rehabilitation, the physical therapy facilities located in the Boulder and Littleton stores, is not part of the acquisition. The facilities are owned and operated by Plaatjes, a world-renowned physical therapist.

This is a great opportunity for me to continue working with our wonderful staff in the stores that I love, adds Plaatjes.

The new owners have prioritized keeping BRC local and connected to the community through personalized services and support of special events. Weekly runs and walking groups are offered at all three locations with local sponsors and refreshments to build camaraderie and connections among local runners.

We have great respect for the history and heritage of Boulder Running Company because we understand the heart, the energy, the risk, and the commitment it takes to build and maintain running stores of this caliber, says Ken Gart, partner of Gart Capital Partners. We have admired these stores and Halberstadts and Plaatjes philosophy for so many years that we are really honored to have it as part of the RSG group.

As part of the partnership formed in March 2012, RSGs headquarters were relocated to Denver, where GCP manages all day-to-day operations as well as merchandising and the acquisition of additional running stores. Finish Line assists with direct logistics, marketing and IT support along with digital expertise, which has included the launch of run.com.

The acquisition follows quickly on the May-23rd announcement of the acquisition by RSG of the six-unit BlueMile running store chain, close to Finish Lines Indianapolis headquarters. RSG made its first acquisition after being formed in early 2012 with the October 2012 acquisition of the five-unit, Dallas-based Run On! chain. In late December, it acquired the Road Runner store in Richmond, VA.

In March on its fourth-quarter conference call, Finish Line officials predicted that RSGs sales would range between $45 million to $55 million in its current fiscal year ended April 2014, driven by a combination of comp store sales growth, plus the acquiring and opening of approximately 30 new stores. RSG sales in its 2013 fiscal year were $27.6 million, with comps increasing in the low teens.

The goal of the RSG partnership is to create the nations single largest operator within the specialty running business. The chain lags behind Fleet Feet Inc., the franchisor which just opened its 100th store and did $130 million in revenues in 2012. Road Runner Sports operates 31 stores but its burgeoning online business puts it in second place.