Blacks ventures pounds 50.8m on purchase of Millets chain
Saturday 13 November 1999
Outdoor acquired Millets from Sears in 1996 for pounds 14m through a management buy-in. Roy Crosland, Outdoor's chief executive who led the buy-in, will have responsibility in the enlarged group for its outdoor range, comprising Blacks Outdoor stores along with Millets, Air and Free Spirit, currently in The Outdoor Group. Mr Crosland will make pounds 3.5m in respect of his Outdoor shares.
Simon Bentley, Blacks' chairman and chief executive, said: "It's been successfully repositioned into a quality mainstream player. Outdoor's management have done a great job." The deal will add Outdoor's 216 outdoor retail stores to Blacks' existing chain of 221 outlets across the UK
Mr Bentley said the enlarged group would be reorganised into two divisions, including one for the 43 Blacks Outdoor stores and the three Outdoor Group chains. The second division will concentrate on Blacks' existing sports and fashion chains - 156 First Sport and 22 Active Venture shops.Tom Knight, who currently manages Blacks Outdoor, willbecome deputy chairman. He will continue to manage the group's sports retail division.
Blacks is paying pounds 50.8m, made up of 6.6 million shares and pounds 28.8m in cash funded by a new pounds 71.5m overdraft from Bank of Scotland. Outdoor, which comes with pounds 6m in debt, had sales of pounds 81m and operating profits of pounds 6.4m last year. Mr Bentley said the price was sensible for both parties.
Blacks will have 16 per cent of the market, compared to the 4 per cent of its nearest rival, Army Surplus Stores. It expects to reap scale economies from centralising purchasing and combining own brands.
Mr Bentley said few, if any, jobs would be lost as he planned around 15 new openings a year. The present retailing environment was difficult, however, because mild weather had dampened demand. "We need it to be cold," he said.
Nick Bubb, retail analyst at SG Securities, said: "It's a great price for Blacks. Outdoor were clearly in a bit of a corner. There are lots of synergy benefits and it's earnings enhancing. But it will be a big change for Roy Crosland, moving from running a business to reporting to someone."
- 2 Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
Rowan Atkinson to sell £10 million McLaren 'supercar' he crashed into a tree and a lamppost
UK weather: Snow to fall in the coming week with sub-zero temperatures to last until early February
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Warriors in ancient Iraq suffered Post-Traumatic Stress Disorder more than 3,000 years ago, say researchers
US blames Russia after rocket attacks in Ukraine kill at least 30
Nigel Farage: NHS might have to be replaced by private health insurance
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
British Muslim school children suffering a backlash of abuse following Paris attacks
George Galloway condemns 'racist, Islamophobic, hypocritical rag' Charlie Hebdo at freedom of speech rally
Islamic history is full of free thinkers - but recent attempts to suppress critical thought are verging on the absurd
iJobs Money & Business
£18000 - £20000 per annum: Recruitment Genius: This rapidly expanding business...
Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...
£16000 - £25000 per annum: Recruitment Genius: This is an exciting opportunity...
£45000 - £47000 per annum + bonus + benefits: Ashdown Group: Java Developer / ...