Collegiate Pacific (AMEX:BOO)
Historical Stock Chart
From Jun 2019 to Jun 2024
![Click Here for more Collegiate Pacific Charts. Click Here for more Collegiate Pacific Charts.](/p.php?pid=staticchart&s=A%5EBOO&p=8&t=15)
Collegiate Pacific Inc (AMEX:BOO):
-- CP purchases 1.66 Million shares for $5.55 per share in cash
from an institutional investor
-- Price Represents 22% discount to $6.74 Price Paid for Original
53.2% Position
-- Companies Mutually Agree to Terminate Merger Agreement
Collegiate Pacific Inc (AMEX:BOO) today announced that it has
purchased an additional 1.66 Million shares of SSPY, or an additional
19% of Sport Supply Group's outstanding shares, for approximately $9.2
Million in cash -- or $5.55 per share of SSPY common stock from an
institutional holder. The purchase was financed under Collegiate
Pacific's existing credit facility with Merrill Lynch Financial
Business Services. Collegiate Pacific also announced that it and Sport
Supply Group, Inc. ("SSPY") have mutually agreed to terminate their
merger agreement. The termination was approved by the Board of
Directors of each company and the Special Committee of the Board of
Directors of Sport Supply Group.
Adam Blumenfeld, President of Collegiate Pacific, stated: "We are
excited about this increase in our SSPY holdings and the long term
anticipation of increased ownership and earnings. While the merger
with Sport Supply has become unlikely to close in a timely fashion
under previously contemplated terms, we believe the purchase of these
1.66 Million shares of Sport Supply Group common stock -- at this
price -- which takes our ownership position to approximately 72% --
will add significant value to our shareholders. The purchase price of
$5.55 per share constitutes a 22% discount to both the $6.74 price
paid to Emerson Radio on July 1, 2005, and the proposed $6.74 per
share price contemplated in the Merger Agreement between the companies
as announced on September 8, 2005.
"We believe this immediate increase in ownership, for cash,
creates the opportunity for longer term earnings leverage for
Collegiate Pacific; reduces potential Collegiate Pacific share
dilution by more than 900,000 shares going forward, and accelerates
earnings growth in future periods. Collegiate Pacific reserves the
right to purchase additional shares of SSG, in public or private
transactions, from time to time, as conditions merit.
"Collegiate Pacific and SSPY will continue upon their previously
announced track of maximizing operating synergies and savings between
the companies. This increased ownership position only heightens our
enthusiasm to leverage the marketing, manufacturing, sales, and
purchasing talents within our respective companies -- for the benefit
of all of our shareholders.
"Collegiate Pacific anticipates it will incur a one-time charge
related to the termination of the Merger Agreement of approximately
$500,000 in our Second Fiscal Quarter of 2006, ending December 31,
2005."
Collegiate Pacific is the nation's fastest growing manufacturer
and supplier of sports equipment primarily to the institutional and
team dealer markets. The Company offers more than 4,500 products to
300,000 prospective and existing customers. The Company distributes
approximately 1.5 million catalogs annually and employs approximately
175 professional road salesmen.
Sport Supply Group is a leading direct marketer and B2B e-commerce
supplier of sporting goods and physical education equipment to the
institutional and youth sports market place. Athletes, coaches and
instructors in schools, colleges, universities, governmental agencies,
camps and youth organizations across the country use our products.
Collegiate Pacific (AMEX:BOO) now owns approximately 72% of Sport
Supply Group's issued and outstanding common stock.
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements include statements relating to
Collegiate Pacific's anticipated financial performance, business
prospects, new developments and similar matters, and/or statements
preceded by, followed by or that include the words "believes,"
"could," "expects," "anticipates," "estimates," "intends," "plans," or
similar expressions. These forward-looking statements are based on
management's current expectations and assumptions, which are
inherently subject to uncertainties, risks and changes in
circumstances that are difficult to predict. Actual results may differ
materially from those suggested by the forward-looking statements due
to a variety of factors, including changes in business, political, and
economic conditions, actions and initiatives by current and potential
competitors, the future performance of Sport Supply Group as a
subsidiary of Collegiate Pacific and the ability of Collegiate Pacific
to realize benefits from its ownership of a majority interest in Sport
Supply Group, the impact of costs related to FAS-141 on the accounting
for Collegiate Pacific's acquisitions, and certain other additional
factors described in Collegiate Pacific's filings made from time to
time with the Securities and Exchange Commission. Other unknown or
unpredictable factors also could have material adverse effects on
Collegiate Pacific's future results, performance or achievements. In
light of these risks, uncertainties, assumptions and factors, the
forward-looking events discussed in this press release may not occur.
You are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date stated, or if no date is
stated, as of the date of this press release. Collegiate Pacific is
not under any obligation and does not intend to make publicly
available any update or other revisions to any of the forward-looking
statements contained in this press release to reflect circumstances
existing after the date of this press release or to reflect the
occurrence of future events even if experience or future events make
it clear that any expected results expressed or implied by those
forward-looking statements will not be realized.