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 Breaking Headlines

Sportsman's Guide Being Acquired

MAY 05, 2006 -- (10:30) The Sportsman's Guide (SGDE) is being acquired by Redcats USA, a catalog and online marketer of apparel and home products operating in North America.

SGDE entered into a definitive agreement pursuant to which VLP Corp., a wholly owned subsidiary of Redcats USA, will acquire all of the SGDE outstanding shares for $31 per share. The $31 per share price represents a 20.2% premium over the three-month average trading price of $25.80 and a 14.8% premium over Thursday's closing price. The transaction values SGDE at approximately $265 million, including the value of outstanding stock options.

The SGDE board unanimously approved the merger agreement and has agreed to recommend to shareholders that they vote to approve the merger. The transaction is expected to close during 3Q, and is subject to SGDE Guide shareholder approval, as well as other customary closing conditions, including the expiration of the Hart-Scott-Rodino waiting period. The transaction is not subject to financing.

SGDE CEO, stated, "We are pleased to make today's announcement. We believe that the price is consistent with management's goal of maximizing shareholder value and we believe that Redcats USA represents a great fit for the company, its customers, associates and managers."

Eric Faintreny, Redcats USA's CEO, said, "We look forward to working with Greg Binkley, his management team and employees to take The Sportsman's Guide and its Golf Warehouse subsidiary to a further step of development."

Binkley will remain CEOfollowing the merger. He and other senior management members of The Sportsman's Guide and The Golf Warehouse have entered into new employment agreements to remain with the companies post-merger.

Redcats' primary brands are Chadwick's®, Roaman's®, Jessica London®, KingSize® and BrylaneHome®. Redcats USA is a wholly owned subsidiary of the Redcats Group, the world's third largest catalog and online group in apparel and home products operating in 26 countries, through 17 brands with a staff of 20,000 associates and a turnover of €4.37 billion in 2005. Redcats Group is a member of the PPR group of companies. The shares of PPR S.A. are listed on Euronext Paris.


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Quick links: One-click access to topics in this article.

Categories
Sporting goods industry
Shareholders
Mergers & acquisitions
Apparel manufacturing

Companies
SGDE
Redcats USA
VLP Corp.
Golf Warehouse
Redcats Group

Concepts
home products
owned subsidiary
merger agreement
senior management members
maximizing shareholder value

People
Hart-Scott-Rodino
Eric Faintreny
Greg Binkley





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