Vestis Retail Group, owned by funds advised by Versa Capital Management and the owner of Bob's Stores and Eastern Mountain Sports (EMS), completed the acquisition of Sport Chalet, the full-service specialty sporting goods retailer with 50 stores in the Western United States.
Sport Chalet, which formerly traded on NASDAQ, becomes privately held. As part of the acquisition, Versa made a substantial equity investment in Vestis and has received financing in the form of a $180 million revolving line of credit with ample undrawn availability to fund ongoing working capital needs.
The combination of Sport Chalet with Vestis's East Coast-based retailers Bob's and EMS creates one of the country's largest outdoor-focused retail groups, with more than 150 stores and $800 million in annual sales. Bob's, an off-price retailer of casual fashion, denim, activewear, team wear and work wear brands, operates 32 stores, while EMS, the second largest outdoor specialty chain after REI, has 67.
Vestis, through its three distinct brands and a national footprint, said it now offers an impressive assortment of branded technical, performance and lifestyle merchandise, and customer and specialty services combined with a unique and scalable online presence.
“We are very excited to add Sport Chalet to the Vestis portfolio. Sport Chalet strengthens our position in the active lifestyle and outdoor categories, provides scale from which to grow, and diversifies our geographic footprint,” stated Mark Walsh, Vestis CEO. “We believe that Sport Chalet will benefit greatly from its addition to Vestis. With the talent and resources that already exist within the Vestis family, we envision a multitude of programs that will leverage the knowledge, talent, and relationships of our three retail brands to the benefit of customers and vendors alike.”
Craig L. Levra will remain in his position as CEO at Sport Chalet and continue to run that business out of the present Los Angeles-area office, reporting to Walsh. Vestis's corporate headquarters will remain in Meriden, CT. Vestis does not anticipate any Sport Chalet store closings as a result of this transaction. Sport Chalet, Bob's and EMS will each continue to operate under their respective brands.
“We look forward to working with our new colleagues at Vestis, a company that understands our customers, our market and our vendors, and has the financial resources to help us grow the business,” said Levra.
Gregory L. Segall, Chairman of Vestis and CEO of Versa Capital Management, said the acquisition of Sport Chalet broadens Vestis' geographic scale and technological capabilities. “We believe the combination of Vestis's well-recognized brands will generate significant operational enhancements and enable each brand to continue to deliver great products and service to its customers,” said Segall.
