Dick’s acquires Chick’s Sporting Goods

PITTSBURGH Dick’s Sporting Goods has accelerated its West Coast expansion with the acquisition of the 15 unit privately held Chick’s Sporting Goods chain.

The acquisition of the company which generated sales of 4120 million during the year ended June 30, 2007 is valued at $71 million. Dick’s will pay for the purchase by tapping its existing credit facility.

The deal makes sense for Dick’s which has made clear its intentions to expand on the west coast and the Chick’s stores are also a good fit since they average 50,000-sq.-ft., which is also Dick’s preferred prototype size. In addition to the 15 existing units, Chick’s had signed leases for two additional stores and those units will open as Dick’s in 2008 and 2009.

“Chick's Sporting Goods is well positioned in several important Southern California markets and this acquisition provides [us] with an immediate presence and market share in Southern California,” said Dick’s chairman and ceo Ed Stack. “The passion with which Chick's Sporting Goods serves the core athlete and California lifestyle customers which include beach and skate markets via their assortment featuring products from authentic manufacturers, commitment to customer service and knowledgeable sales associates, along with Chick's community involvement compliments Dick's Sporting Goods strategy.”

The acquisition is expected to be marginally accretive to earnings in 2008.