Sportsman’s Warehouse Holdings Inc. has agreed to acquire eight Field & Stream locations from DICK’S Sporting Goods Inc. for $28 million. The acquired stores will be operated as Sportsman’s Warehouse stores and are located in Pennsylvania (three), New York (two), North Carolina (two) and Michigan (one). The deal is consistent with Sportsman’s strategy to return to a more typical store growth pattern, following investment in omni-channel capabilities, technology and debt reduction over the last two years.
The price for inventory and assets will be funded through borrowings under Sportsman’s revolving credit facility. The Utah-based company will sublease the eight locations from DICK’S. The transaction is expected to close on Oct. 11, 2019, subject to customary closing conditions.
Excluding non-recurring costs and non-cash purchase accounting adjustments, the transaction is expected to be neutral to EPS in fiscal year 2019, and accretive to EPS in fiscal year 2020. The acquired stores, both individually and collectively, meet or exceed the investment hurdle rates that Sportsman’s has established for opening any new store.
Headquartered in Pittsburgh, DICK’s is the largest U.S.-based, full-line omni-channel sporting goods retailer, operating more than 720 DICK’s Sporting Goods locations. The company also owns and operates Golf Galaxy and Field & Stream specialty stores, as well as GameChanger, a youth sports mobile app for scheduling, communications and live scorekeeping.