Sounds like the same old story but with a slightly different cast of characters. Foot Locker Inc. put itself on the block, again after a disappointing second-quarter sales forecast. The New York-based sneaker and sports apparel retailer hired Lehman Brothers Inc. "to evaluate strategic alternatives, including inquiries received from private equity firms." The New York Post reported July 19 Foot Locker was a target with suitors possibly including Apollo Management LP and Michael Ashley, the man behind Europe's Sports World International Ltd.
A little more than a year ago, Foot Locker reportedly put itself on the block and confirmed it hired Evercore Partners to possibly sell the company. A quality offer never transpired triggering Foot Locker to become the hunter, making an unsolicited $1.2 billion bid for Genesco Inc., which it eventually dropped. Genesco eventually accepted a higher, $1.5 billion bid from smaller Foot Locker rival, Finish Line Inc.
For the second quarter of 2007, Foot Locker said it expects a per-share loss of 17 cents to 20 cents, due to increased markdowns to liquidate slow-selling inventory, and comparable-store sales to decrease 7% to 8%. The company said a total of up to 250 stores will be closed in 2007 and that 30 new stores are slated to open in Europe. —Carolyn Murphy and Gerald Magpily
See TheStreet.com article
See TheDeal: Genesco opts for Finish Line offer
See May 2007 Dealscape posting
See August 2006 Dealscape posting
See May 2006 Dealscape posting
Tags: retail, acquisition, deals, m&a, mergers, private+equity
Continue reading below
