Sportsman’s Warehouse Holdings Inc. announced Monday that it has entered into agreements with Dick’s Sporting Goods Inc. to acquire eight Field & Stream locations for $28 million.
The acquired stores will be operated as Sportsman’s Warehouse stores and are located in Pennsylvania (three), New York (two), North Carolina (two) and Michigan (one). The total purchase price of $28 million for inventory and assets will be funded through borrowings under Sportsman’s revolving credit facility. Sportsman’s will sublease the eight locations from Dick’s. The transaction is expected to close on October 11 subject to customary closing conditions.
This acquisition is consistent with Sportsman’s strategy to return to a more typical store growth pattern, following a period of investment in omni-channel capabilities, technology, and debt reduction over the last two years.
“We are very pleased to announce this opportunistic expansion of our current 95 store base through the acquisition of these 8 Field & Stream locations. Each of these stores operate in strong markets, with well-established customer bases. We look forward to serving these communities with our continued strong commitment to provide outstanding gear and exceptional service to inspire outdoor memories.” said Jon Barker, CEO.
Excluding non-recurring costs and non-cash purchase accounting adjustments, this transaction is expected to be neutral to EPS in fiscal year 2019, and accretive to EPS in fiscal year 2020. The acquired stores, both individually and collectively, meet or exceed the investment hurdle rates that Sportsman’s has established for opening any new store.