CIT: West Coast team featured in Fashion Manuscript.
FSG LAWYERS: Represented Loomworks Apparel (P.J. Salvage) on its acquisiton by Delta Galil.
Details on Industry Insight.
One of Canada’s largest chain retailers and an important action sports industry customer announced this morning that the Canadian Tire Corporation is acquiring the company for $771 million.
The Forzani Group, which operates more than 500 stores, including the Sport Chek banner and others, carries action sports apparel, footwear and hardgoods in some of its stores, in addition to a wide range of sporting goods.
The Canadian Tire Corporation operates several different chains, including 485 stores under the Canadian Tire banner, which sells auto parts and accessories, sports and leisure goods and home products. It also owns 87 PartSource stores, 378 Mark’s Work Warehouse apparel stores, and 272 Canadian Tire Petroleum gas bars, 267 convenience stores and 73 car washes.
According to the press release, the Forzani Group banners are more apparel and footwear focused, and its hardgoods offering is mostly different from what is sold at Canadian Tire. Canadian Tire appears to specialize in camping equipment, bicycles, trampolines, air rifles, etc. in its sport and leisure department.
Canadian Tire will operate the Forzani Group’s stores as a separate unit, according to the press release. The company thinks the acquisition is a good fit because it gives Canadian Tire access to the mall shopper and to “the important” 18 to 35 year old customer.
Canadian Tire will pay for the $771 million acquisition with $500 million in cash and the rest with short-term financing.