The Sportsman's Guide Acquires The Golf Warehouse - TGW.com in All Cash Transaction
29 Juin 2004 - 11:32PM
PR Newswire (US)
The Sportsman's Guide Acquires The Golf Warehouse - TGW.com in All
Cash Transaction Minnesota-Based Catalog and Internet Retailer
Purchases Leading Online and Catalog Golf Retailer in Accretive
Transaction; Company Raises Sales and Earnings Guidance SOUTH ST.
PAUL, Minn., June 29 /PRNewswire-FirstCall/ -- The Sportsman's
Guide, Inc. (NASDAQ:SGDE), a St. Paul, Minnesota-based catalog and
Internet retailer, announced today that it has acquired The Golf
Warehouse, LLC, ("TGW") the Wichita, Kansas-based leading online
and catalog retailer of golf equipment, apparel and accessories, in
an all cash transaction valued at approximately $30 million. A
combination of available cash and an expanded bank credit facility
will be used to finance the transaction, purchasing TGW from its
management and Falconhead Capital, a private investment firm. The
Golf Warehouse was founded in 1998 and has enjoyed extraordinary
growth in sales since then, recording a five-year compounded growth
rate in excess of 60%. For its year ended December 31, 2003, TGW
had sales of over $40 million, adjusted EBITDA of approximately $3
million and operating income of $1.7 million. Its website is
located at http://www.tgw.com/ . The transaction is expected to be
immediately accretive and the Company is increasing current revenue
guidance for all of 2004 by 10% to 12% and current earnings per
share guidance for the same period by $0.08 to $0.10. TGW.com
offers consumers more than 18,000 brand-name items. These items
include Titleist, Taylor Made, Nike, Callaway, PING, Cobra, Footjoy
and adidas. It rotates feature products on its homepage, provides
easy online navigation, huge in-stock warehousing, efficient
fulfillment and friendly customer service. TGW began its print
catalog in the winter of 2002, reaching roughly one million golf
consumers and gift givers with each of its four annual editions.
Gregory R. Binkley, President and Chief Executive Officer of The
Sportsman's Guide, commented on the transaction, "We are very
pleased to announce the consummation of this transaction. It meets
all of the objectives that we established for ourselves when we set
out to grow our business through acquisition. These objectives with
respect to this acquisition include: -- It is accretive to
earnings; -- Its product offerings are consistent with our
commitment to equip consumers to pursue and live an outdoors
lifestyle; -- It has a talented and effective management team, who
we will retain; -- It adds a spring and summer business to our
business, helping to smooth some of the seasonality that we have
traditionally seen; -- It has recently started a catalog where we
can add significant value based on our experience and expertise; --
It has shown remarkable growth in online sales; -- We believe
significant synergies and cost savings will be achieved. Binkley
went on to comment on the online golf industry and TGW. "We are
especially excited to add the premier and preeminent online golf
retailer to our Company and we will maintain its strong brand
identity. TGW enjoys strong relationships with The Golf Channel,
with the PGA Tour and with all of the major equipment
manufacturers. It has shown significant year over year sales growth
since its inception, gaining market share well in excess of
industry growth rates. Sales of golf equipment and golf apparel
represent a $5 to $6 billion annual market and statistics tell us
golfers use the Internet more frequently than many other consumers
grouped by leisure activity. We expect to see TGW's market share
and consumer awareness increase going forward." Mark Marney,
Founder and Chief Executive Officer of TGW, stated, "Our management
team and our employees are excited to become a part of a growing,
dynamic public company that has been one of the best performing
companies of its size over the past three years. We look forward to
making significant contributions to the ongoing success of The
Sportsman's Guide." Conference Call The Sportsman's Guide will hold
a conference call on Wednesday, June 30, 2004, to discuss the
acquisition. Gregory R. Binkley, President and Chief Executive
Officer, and Charles B. Lingen, Executive Vice President and Chief
Financial Officer, will be present on the call to provide
commentary and to take questions. The call will be begin at 10:30
a.m., Central Time. Participants may access the call by dialing
1-800-209-8032 -- Conference ID # 8506172. The call may also be
accessed via the Internet at http://www.sportsmansguideir.com/ .
The Sportsman's Guide offers value-priced outdoor gear and general
merchandise with a special emphasis on outdoor clothing, equipment
and footwear, sold through both catalogs and Internet websites:
http://www.sportsmansguide.com/ , and
http://www.bargainoutfitters.com/ . The Company was recently ranked
35th on BusinessWeek's listing of 100 "Hot Growth Companies." The
list appeared in the June 7, 2004 edition of the magazine.
Inclusion on the list was based on a company's three-year results
in sales growth, earnings growth and return on invested capital.
Investor information about the Company can be found at
http://www.sportsmansguideir.com/ . This release contains forward
looking statements which are subject to change based on various
important factors, including but not limited to general economic
conditions, a changing market environment for the Company's
products and the market acceptance of the Company's catalogs,
Internet sites and offerings. CONTACT: 612-344-1000 William P.
Bartkowski BlueFire Partners 612-344-1012 (direct) Website:
http://www.TGW.com http://www.sportsmansguideir.com
http://www.bargainoutfitters.com DATASOURCE: The Sportsman's Guide,
Inc. CONTACT: William P. Bartkowski of BlueFire Partners,
+1-612-344-1000, or +1-612-344-1012 (direct)
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