Genesco to Sell Lids for $100 Million
Genesco Inc. is selling the Lids Sports Group for $100 million to FanzzLids Holdings.
The holding company is controlled and operated by affiliates of Ames Watson Capital, the owner of Fanzz, a specialty retailer of officially licensed sports apparel. Fanatics, a leader in sports licensing and e-commerce, will make a minority investment in FanzzLids Holdings in connection with entering into a commercial arrangement with that holding company.
"We are pleased to have reached an agreement to sell the Lids Sports Group to a buyer with experience in the licensed sports industry,” said Genesco chairman, president and chief executive officer Robert J. Dennis. “Under new ownership, the very talented team at Lids will continue to have the opportunity to realize the potential in this business. We look forward to closing the transaction and devoting the full attention of Genesco's management team to the opportunities we see in a footwear-focused company."
Genesco expects that cash proceeds net of taxes and transaction-related costs, including a tax benefit estimated at approximately $29 million, will be used to repurchase shares of the company's common stock. The company also announced that its board of directors has increased its existing authorization to repurchase common stock to $125 million.