The Finish Line announced today that it has signed a definitive agreement to acquire all of the outstanding stock of The Hang Up Shoppes, Inc., for $12 million in cash plus a potential earnout of up to $6 million in cash. The Hang Up Shoppes does business under the Man Alive moniker, a mall-based hip-hop fashion retailer, headquartered in Indianapolis. Man Alive operates 38 mall-based stores in Georgia (3), Illinois (10), Indiana (7), Kentucky (1), Maryland (1), Michigan (8), Missouri (1), Ohio (6) and Virginia (1).
Man Alive does approximately $30 million in annual sales and stores average 2,900 square feet. Merchandise mix is 95% apparel and 5% footwear. Footwear vendors listed on the Man Alive informational website are: Timberland, Reebok, Ecko, Phat Farm and Dickies.
The Finish Line believes that if the transaction is consummated it will be “slightly accretive” to diluted earnings per share for Finish Line’s fiscal year 2006. The transaction is expected to close by the end of January.
Man Alive was founded by Barbara and Mandell Bublick in 1969 in Benton Harbor, Michigan. Jeff Bublick, son of the founders and Man Alive president, is expected to continue his leadership following the close of the transaction and Jeffs Brothers, Ben Bublick and Dan Bublick, are expected to remain in their roles of VP-Merchandise and VP-Store Operations. Barbara and Mandell are expected to continue with the company in a consultant capacity.
FINL EVP/CFO Kevin Wampler described the business as a “good growth vehicle” and said, “It is FINLs intention to operate Man Alive as a separate division and to maintain operations as is, after consolidating back office functions.”