SportsClick, a sports licensing manufacturer based in Calgary, Canada, has completed the purchase of SunVette Racing Inc., a Nova Scotia-based private sports collectibles company, primarily focused in NASCAR licensed merchandise. SportsClick has licenses for NASCAR, NHL, NFL and MLB in caps and novelty items.

 

SunVette, which has current annual revenues of approximately $700,000, was acquired for $141,000. The purchase will be paid through the issuance at closing of an aggregate 352,500 common shares of SportsClick shares at a price of 40 cents each.

 

Jack Ross, SportsClick's CEO said the SunVette acquisition is important for several reasons.

 

“We have been studying the franchise business opportunity for some time. SunVette delivers a proven retail merchandizing model that thrives in a big box environment. The franchise experience in the United States in the collectable retail sector has been remarkably successful. For instance ProImage LC, an industry leader in the US, has annual sales of approximately $60 million averaging more than $500,000 per retail franchise.”

“Owning and operating a specialty retail store requires skills and knowledge that can only be learned from someone with successful retail experience. We are very pleased SunVette's founder and CEO Dale Hubley has joined the SportsClick team. Dale built his collectables retail operation from scratch into a highly successful business generating consistent annual profits. We believe our franchisees will benefit significantly from his experience and guidance.”


Dale Hubley said “I was very impressed with Jack's knowledge of this business. He has built a great team which I am proud to join. Ultimately the profitability of any retail operation comes down to maintaining margins. SportsClick's buying power is second to none in this industry. The ability to purchase top quality, licensed merchandise at highly competitive wholesale prices virtually guarantees that our franchise owners will be successful. After seventeen years in this business, I'm excited and looking forward to great things happening as we grow the SportsClick franchise business.”


Over the next few months, SportsClick plans to open two additional retail outlets to test market slightly different merchandizing concepts. The company expects franchising will begin during the first half of 2009.