Sport Chalet Inc. will be acquired by Vestis Retail Group for about $17 million plus accumulated debt, the company announced Tuesday.
The retailer has bank debts of $52.5 million, according to its latest annual report, bringing the total value of the acquisition to nearly $70 million. Vestis will acquire all outstanding shares at a price of $1.20 each.
Vestis, which is owned by funds advised by Versa Capital Management LLC, is also the parent of Bob’s Stores and Eastern Mountain Sports. Combined, the three companies had about $800 million in sales last year across 150 stores nationally.
“Sport Chalet greatly strengthens our position in the active lifestyle and outdoor categories, provides scale from which to grow, and diversifies our geographic footprint,” Mark Walsh, chief executive of Vestis, said in a statement.
Craig Levra, Sport Chalet’s chief executive and chairman, will continue in his current position and report to Walsh. Sport Chalet will continue to operate from its La Canada Flintridge headquarters under its same brand name, and Vestis will maintain its business in Meriden, Conn.
“We believe Vestis is the ideal partner given its base of stores in the eastern U.S. and synergistic vendor relationships, marketing focus and inventory platforms,” Levra said in a statement.
The transaction is expected to close before the end of the third quarter.
Shares of Sport Chalet closed up 31 cents or 37 percent to $1.15 on the Nasdaq.