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Genesco Closes USD 100m Sale of Lids Sports Group to FanzzLids
Friday 08 February 2019

8 February 2019 - Tennessee, US-based speciality retailer Genesco Inc. (NYSE: GCO) has closed the sale of its Lids Sports Group for USD 100m in cash to FanzzLids Holdings, a holding company controlled and operated by affiliates of Ames Watson Capital, LLC, the company said.

Ames Watson is the owner of Fanzz, a speciality retailer of officially licensed sports apparel. Fanatics Inc., a leader in sports licensing and ecommerce, will make a minority investment in FanzzLids Holdings in connection with entering into a commercial arrangement with that holding company.

Genesco expects that cash proceeds net of taxes and transaction-related costs, including a tax benefit estimated at approximately USD 29m, will be used to repurchase shares of the company's common stock.

The company also announced that its board of directors has increased the company's existing authorisation to repurchase common stock to USD 125m. The number of shares to be repurchased and the manner and timing of purchases will be determined by the company's management.
Genesco Inc. sells footwear, headwear, sports apparel and accessories in more than 2,650 retail stores and leased departments throughout the US, Canada, the United Kingdom, the Republic of Ireland and Germany.

The company's Lids Sports Group division operates the Lids headwear stores, the Locker Room by Lids and other team sports fan shops and single team clubhouse stores. 

PJ Solomon served as financial advisor and Bass, Berry and Sims PLC acted as legal advisor to Genesco with respect to the transaction.
Details
Date Published: 08/02/2019
Target: Lids Sports Group
Country: USA
Deal Size: 100m (USD)
Sector: Wholesale/Retail
Type: Divestment
Financing: Cash
Status: Closed
Vendor: Genesco
Buyer: FanzzLids Holdings/ Ames Watson Capital
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