Zumiez, Inc. signed a definitive agreement to acquire action sports retailer, Fast Forward. Fast Forward operates 19 stores, 16 of which are in Texas, with one store in California and two stores in Oklahoma. The chain had sales of “slightly under $24 million” during the previous year with stores averaging 2,900 square feet, slightly larger than Zumiez average.
To fund the acquisition, Zumiez will use 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 second quarter of fiscal 2006. Over the course of the 18 months after closing, the Fast Forward stores will be converted to the Zumiez nameplate.
The company expects the acquisition to add a penny to 2 cents to earnings per share in 2006 and to be accretive to earnings by approximately 8 cents to 9 cents in fiscal 2007.
