FGL Sports, part of the Canadian Tire family of companies, to acquire Pro Hockey Life

FGL Sports, part of the Canadian Tire family of companies, to acquire Pro 
Hockey Life 


    --  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 
companies."

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 
Elliott LLP.

Champlain Financial Corporation acted as financial advisor to Pro Hockey Life. 
Legal counsel was provided to Pro Hockey Life by Fasken Martineau Dumoulin LLP.

FORWARD-LOOKING STATEMENTS

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 
made.

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 
www.corp.canadiantire.ca.

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 
securities laws.

Media: Rob Nicol, 416-480-8414,robert.nicol@cantire.com

Investors: Lisa Greatrix, 416-480-8725,Lisa.Greatrix@cantire.com Andrea 
Orzech, 416-480-3195,Andrea.Orzech@cantire.com

SOURCE: FGL Sports Ltd.

To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/November2012/28/c4130.html

CO: Canadian Tire Corporation, Limited - Investor Relations
ST: Alberta
NI: SPORTS RET MAC MNA 

-0- Nov/28/2012 12:00 GMT


 
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