New York City Foot Locker has signed a definitive agreement with dELiA*s, Inc. to purchase its direct-to-consumers business, CCS, for $102 million in cash. The purchase is expected to close within the next 60 days.
CCS sells skateboard footwear, apparel and accessories via catalogs and the Internet with revenues expected to exceed $80 million in 2009. The company targets young male skateboarding enthusiasts.
"The impending purchase of CCS is in line with one of our strategic priorities—pursuing the acquisition of athletic footwear and apparel retailers that are compatible with our existing portfolio of businesses," stated Matthew D. Serra, chairman and CEO of Foot Locker, Inc. "We believe that expanding our offerings in the skateboard category will allow us to broaden our appeal to the teenaged male, providing an exciting growth opportunity for our company.”
Serra added that Footlocker’s strong financial position would enable the company to complete the transaction in a timely manner as an all-cash transaction.
Barclays Capital is serving as the exclusive financial advisor to Foot Locker for the transaction, which is subject to certain closing adjustments and review under the Hart-Scott-Rodino Antitrust Improvements Act.