NEW YORK — Foot Locker has started the ball rolling toward acquiring Runners Point Warenhandelsges, a specialty athletic store and online retailer based in Recklinghausen, Germany, for a total cash consideration of approximately $94 million.
RPG is currently majority owned by the private equity firm Hannover Finanz. The company's CEO, Otto Hurler, and CFO, Harald Wittig, own the balance of the company. Hurler and Wittig, along with other members of senior management, will remain with the company post-acquisition. The transaction is subject to review by merger control authorities in Germany.
RPG has a leading position in the German athletic retail market, operating more than 200 stores — with its most prominent banners being Runners Point and Sidestep — as well as an online subsidiary, Tredex. RPG previously announced sales of $254 million for 2012. Most of the stores are in Germany, although there are also Runners Point and Sidestep stores in The Netherlands, Austria and Switzerland. While most of the stores are owned and operated by RPG, 28 of the stores are operated by franchisees. The purchase price will be allocated between the sellers and RPG's primary creditors, delivering to Foot Locker, Inc. an entity which is substantially debt-free.
"We are excited to be adding Runners Point, a fast-growing, multi-format and multichannel business, to our already-strong European operations," said Ken C. Hicks, chairman and CEO of Foot Locker. "This acquisition will enhance our position in Germany, the strongest economy in Europe, and also provide us with additional banners to further diversify and expand our European business. We also intend to leverage Tredex's strong digital capabilities to accelerate growth in our own developing European e-commerce business."
"Our association with Foot Locker will significantly enhance the Runners Point team's ability to capitalize on the growth strategies we have been actively pursuing in recent years," said Hurler. "We look forward to working closely together to maximize the performance of our business as part of one of the world's leading specialty athletic retailers."
Foot Locker operates 3,335 stores in 23 countries in North America, Europe, Australia and New Zealand, including Foot Locker, Footaction, Lady Foot Locker, Kids Foot Locker and Champs Sports retail stores, as well as its direct-to-customer channel Footlocker.com/Eastbay/CCS.