This excerpt taken from the FL 8-K filed Sep 30, 2008.
FOOT LOCKER, INC. SIGNS DEFINITIVE AGREEMENT
New York, NY, September 29, 2008 Foot Locker, Inc. (NYSE: FL), the New York-based specialty athletic retailer, today announced that it has signed a definitive agreement with dELiA*s, Inc. to purchase its direct-to-consumers business, CCS, for $102 million in cash. The transaction, which is expected to close within the next 60 days, is subject to certain closing adjustments and review under the Hart-Scott-Rodino Antitrust Improvements Act.
CCS is the leading direct-to-consumers retailer in the United States that sells skateboard footwear, apparel and accessories through catalogs and the Internet with revenues expected to exceed $80 million in 2009. The target customer of CCS is a teenaged boy who actively participates in the sport of skateboarding. CCS, founded in California in 1985, is currently managed by a strong merchant team located in New York City, led by Susan Van Arsdale who will remain with CCS as managing director.
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 Chief Executive Officer 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. The combination of the highly regarded CCS management team and our well-run Footlocker.com/Eastbay operation is expected to provide significant benefits to both businesses.
Our Companys strong financial position enables us to complete this opportunistic transaction in a timely manner as an all-cash transaction, continued Mr. Serra. It is expected that the agreed upon acquisition will be accretive to Foot Locker, Inc.s diluted earnings per share within the first full year of operation.
Barclays Capital is serving as the exclusive financial advisor to Foot Locker, Inc.