A Meriden retail group that owns Eastern Mountain Sports and Bob’s Stores said it has signed an agreement to acquire Sport Chalet for approximately $14.9 million.
Vestis Retail Group, which is owned by funds advised by Philadelphia’s Versa Capital Management, said the deal would make it one of the largest sporting goods retailers in the country, with more than 150 stores and $800 million in sales.
Vestis said it has received $180 million in financing to invest in Sport Chalet, which would remain headquartered in California under CEO Craig Levra.
Sport Chalet leases 50 store locations in Arizona, California, Nevada and Utah. The acquisition would take the retailer private.
An affiliate of Vestas will commence a cash tender offer in the next five days to acquire all outstanding shares of the publicly traded Sport Chalet for $1.20 per share.
The price could be reduced to $1.04 if the shares tendered in the offer, combined with the shares Vestis will purchase from the retailer’s founding family members, do not constitute 90 percent of both share classes.
The companies expect the deal to close by the end of the third quarter.
