Established in 1992, Southprint has evolved from a provider of custom printed NASCAR apparel to retail outlets into a manufacturer of head-ware, outerwear and die-cast collectibles. Southprint also provides high volume, top quality contract screen printing for many nationally recognized brands. Southprint owns 19 product manufacturing licenses including rights to Dale Earnhardt Jr., CoorsLight Racing and Jim Beam Racing. Located in the heart of NASCAR country, Southprint operates from corporately owned facilities in Martinsville, Virginia. Its 90,000 square foot office, warehouse and production center is in a prime industrial park location. Southprint last year had annual sales of approximately $15 million.
Under the terms of the Letter of Intent SportsClick will acquire Southprint for $3 million CND in an all stock transaction. The closing, scheduled for February 27, 2009 (subject to due diligence, certain conditions in the Letter of Intent and Board approval.) Sportsclick will issue 6 million shares to Southprint shareholders at a deemed price of $0.50 per share and acquire 100% of Southprint. The deal is also subject to the successful negotiation and execution of a purchase and sale agreement and such agreement will contain conditions, representations and warrantees customary to transactions of this nature. The acquisition is arm's length and is also subject to regulatory approval.
Jack Ross, SportsClicks' CEO said “The Southprint acquisition positions Sportsclick as a major player in the sports merchandising business in North America. We have been looking for an acquisition that can provide us with an established manufacturing and distribution capability in the United States. Southprint's existing operations and nationwide retail customer base represent an outstanding opportunity for us to leverage our direct buying relationships with apparel manufacturers.”
Mr Ross went on to say, “In our business direct product manufacturing licenses for high sales volume merchandise are vital to growing market share and maintaining profitability. We look forward to working with Butch Hamlet and his able Southprint team as we merge our product lines to create a dominant sports merchandising business across North America.” Butch Hamlet, Southprint's' founder and CEO said, “Southprint's NASCAR licenses, distribution network, manufacturing expertise, and importing experience are a perfect fit for SportsClick's growth model.”
Mr Hamlet also said, “SportsClick's state of the art systems enable real time inventory controls and online purchasing. Integration of these systems into Southprint's operations will significantly extend the reach of our NASCAR licenses. Jack Ross and the Sportsclick team are terrific people, and we expect great economies will result from our combined operations.”
SportsClick, which trades on the Toronto Stock Exchange, is a wholesaler of licensed, authentic sports merchandise and apparel across Canada. Its distribution network includes both independent and leading retailers including Ultramar and Petro-Canada convenience Stores, Husky Markets, Loblaws, London Drugs and Calgary Co-Op stores.
