Zumiez Inc. has signed a definitive agreement to acquire Fast Forward, an action sports retailer with 19 stores and a web presence. Of the 19 stores, 16 are in Texas, with one store in California and two stores in Oklahoma. Zumiez will fund the acquisition from cash on hand.
The transaction has been approved by the Zumiez board of directors and the owners of Fast Forward, and closing, which is subject to customary conditions including regulatory approvals, is expected in the 2nd quarter of fiscal 2006. Over the course of the 18 months after closing, the Fast Forward stores will be converted to the Zumiez nameplate. These additional stores will be incremental to the planned 42 stores in 2006. The company expects the acquisition to add a penny to 2 cents to earnings per share in 2006 and to be accretive to earnings per share by approximately 8 cents to 9 cents in fiscal 2007.
Rick Brooks, President and Chief Executive Officer of Zumiez Inc., stated, “We are excited about this transaction as Zumiez and Fast Forward are uniquely aligned in the rapidly expanding action sports retail landscape. Fast Forward gives us instant access to consumers in Texas, where we currently have just three stores, only two which overlap with Fast Forward. Additionally, Fast Forward's culture and product offerings mesh extremely well with ours. We believe that this acquisition will help further our strengthening position in the youth market.”
