FGL Sports, part of the Canadian Tire family of companies, to acquire Pro
-- FGL Sports Ltd., a wholly-owned subsidiary of Canadian Tire
Corporation, Limited, enters into a purchase agreement with Pro
Hockey Life Sporting Goods Inc. for $85 million
-- Acquisition of premier, high-end hockey store chain is a
natural extension of Company's strength in sports
-- Builds on Canadian Tire's successful acquisition and
integration of FGL Sports
-- Accretive to earnings in the first year
-- Consistent with Canadian Tire's strategy to seek new platforms
for growth in core categories
CALGARY, Nov. 28, 2012 /CNW/ - FGL Sports Ltd., a division of Canadian Tire
Corporation, Limited (TSX:CTC) (TSX:CTC.a) , today announced that it has
entered into an agreement to purchase Pro Hockey Life Sporting Goods Inc., a
private company, for $85 million. The transaction follows Canadian Tire's
successful acquisition of FGL Sports in 2011 and builds on the Company's
strength as Canada's leading sports authority.
Pro Hockey Life is a premier sports retailer with 23 urban, high-end hockey
stores operating in five provinces across Canada. It has annual revenue of
approximately $95 million, a unique customer base, as well as a more extensive
product assortment and depth of product offering than existing retail banners.
"Hockey isn't merely something we sell in our stores," said Stephen Wetmore,
President and CEO, Canadian Tire Corporation. "Hockey is in our DNA -
whether it's our relationship with the NHL, helping kids in need through our
Jumpstart charity or supporting junior hockey players and teams across the
country, we are a Canadian company supporting Canada's game."
"Whether Canadians aspire to be a champion in the playground or on a podium,
Canadian Tire believes it has a role in helping active people and athletes
succeed," continued Wetmore.
"No one knows sports in Canada better than our family of Canadian Tire
companies," said Michael Medline, President, FGL Sports. "This acquisition
is a natural extension of our core authority in sports and hockey and Pro
Hockey Life will be an excellent addition to our family of great Canadian
Upon conclusion of the transaction, Pro Hockey Life will operate as a banner
under FGL Sports, joining super brands such as Sport Chek and Sports
Experts. The acquisition will bolster Pro Hockey Life's capacity to provide
Canadians with an unparalleled selection of hockey equipment, knowledgeable
staff and excellent customer experience. It will also provide FGL Sports
with the ability to serve a broader cross section of hockey players of varying
ages and skill levels.
"I am very proud of how we have grown Pro Hockey Life into a leader in hockey
retail, thanks to the hard work and commitment of all of our employees," said
Scott Jackson, President, Pro Hockey Life. "Pro Hockey Life has a bright
future as part of the Canadian Tire family and I have no doubt that the
company will reach even greater heights within FGL Sports."
This transaction, which builds on the successful acquisition of FGL Sports in
August, 2011, is subject to receipt of certain regulatory approvals, third
party consents and other customary conditions. Completion of the transaction
is expected to close in the early part of 2013.
Blair Franklin Capital Partners acted as financial advisor to Canadian Tire.
Legal counsel was provided to Canadian Tire by Goodmans LLP and Stikeman
Champlain Financial Corporation acted as financial advisor to Pro Hockey Life.
Legal counsel was provided to Pro Hockey Life by Fasken Martineau Dumoulin LLP.
This document contains forward-looking information that reflects management's
current expectations related to the proposed acquisition. Forward-looking
statements are provided for the purposes of providing information about
management's current expectations and plans and allowing investors and
others to get a better understanding of our financial position, results of
operation and operating environment. Readers are cautioned that such
information may not be appropriate for other circumstances.
All statements other than statements of historical facts included in this
document may constitute forward-looking information, including but not limited
to, statements concerning the expected benefits of the proposed acquisition,
such as growth potential and market profile; the competitive ability and
position of Canadian Tire, FGL Sports and Pro Hockey Life following the
proposed acquisition; the expected timing of completion of the proposed
acquisition; and management's expectations relating to possible or assumed
future prospects and results, our strategic goals and priorities, our actions
and the results of those actions and the economic and business outlook for us.
Often but not always, forward-looking information can be identified by the use
of forward-looking terminology such as "may", "will", "expect", "believe",
"estimate", "plan", "could", "should", "would", "outlook", "forecast",
"anticipate", "foresee", "continue" or the negative of these terms or
variations of them or similar terminology. Forward-looking information is
based on the reasonable assumptions, estimates, analysis and opinions of
management made in light of its experience and perception of trends, current
conditions and expected developments, as well as other factors that management
believes to be relevant and reasonable at the date that such statements are
By its very nature, forward-looking information requires us to make
assumptions and is subject to inherent risks and uncertainties, which give
rise to the possibility that the Company's assumptions may not be correct and
that the Company's expectations and plans will not be achieved. Although the
Company believes that the forward-looking information in this document is
based on information and assumptions that are current, reasonable and
complete, this information is necessarily subject to a number of factors that
could cause actual results to differ materially from management's expectations
and plans as set forth in such forward-looking information for a variety of
reasons. Some of the factors - many of which are beyond our control and the
effects of which can be difficult to predict - include (a) the failure to
obtain, on a timely basis or otherwise, required approvals of regulatory
agencies (including the terms of such approvals); (b) the risk that a
condition to completion of the proposed acquisition may not be satisfied; (c)
the risk that the Pro Hockey Life business will not be integrated
successfully; (d) the possibility that the anticipated benefits and synergies
from the proposed acquisition cannot be realized or may take longer to realize
than expected; (e) the ability of Canadian Tire, FGL and Pro Hockey Life to
retain and attract key personnel and maintain relationships with customers,
suppliers and other business partners, as well as our financial arrangements
with such parties; and (f) credit, market, currency, operational, liquidity
and funding risks generally, including changes in economic conditions,
interest rates or tax rates; and (g) risks and uncertainties relating to
information management, technology, supply chain, product safety, changes in
law, competition, seasonality, commodity price and business disruption. We
caution that the foregoing list of important factors and assumptions is not
exhaustive and other factors could also adversely affect our results.
Investors and other readers are urged to consider the foregoing risks,
uncertainties, factors and assumptions carefully in evaluating the
forward-looking information and are cautioned not to place undue reliance on
such forward-looking information.
For more information on the risks, uncertainties and assumptions that could
cause the Company's actual results to differ from current expectations, please
refer to the "Risk Factors" section of our Annual Information Form for fiscal
2011 and our 2011 Management's Discussion and Analysis, as well as the
Company's other public filings, available at www.sedar.com and at
The forward-looking statements and information contained herein are based on
certain factors and assumptions as of the date hereof. The Company does not
undertake to update any forward-looking information, whether written or oral,
that may be made from time to time by it or on its behalf, to reflect new
information, future events or otherwise, unless required by applicable
Media: Rob Nicol, 416-480-8414,email@example.com
Investors: Lisa Greatrix, 416-480-8725,Lisa.Greatrix@cantire.com Andrea
SOURCE: FGL Sports Ltd.
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-0- Nov/28/2012 12:00 GMT
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