Based in Baltimore, Maryland, and currently majority-owned by BRS & Co. and Goode Capital, DTLR was established in 1982 and operates from 247 stores across 19 states, principally in the north and east of the country.
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It was originally named Downtown Locker Room and later re-branded as DTLR and, in 2017, merged with Sneaker Villa Inc, which was previously based in Philadelphia.
In the year to February 1, 2020, the firm delivered underlying earnings (EBITDA) of US$45.6mln and profit before tax of US$1.6mln.
Completion of the acquisition is subject to customary closing conditions, including expiration or termination of the applicable waiting period under the US Hart-Scott-Rodino Antitrust Improvements Act.
The FTSE 100 firm anticipates completing the acquisition during the first quarter of 2021.
Out of the total consideration of US$495mln, funded from the retailer’s cash resources and existing bank facilities, US$100mln will be used to repay DTLR’s existing debt.
The DTLR Management Team, headed up by Glenn Gaynor and Scott Collins, who will be continuing in their roles as co-CEOs, will also be reinvesting a portion of their proceeds back into DTLR in exchange for a new minority stake of 1.4%.
The UK athleisure retailer said the acquisition will enhance its presence in the north and east of the US, complementing the existing JD and Finish Line fascias and the recent acquisition of Shoe Palace.
Shares jumped 6% to 792p on Monday morning.