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Foot Locker Locks Onto CCS
The teenage skateboarding brand will join Foot Locker as part of a $102 million all-cash deal.
September 29, 2008
Foot Locker Inc. has agreed to acquire the CCS brand from Delias Inc. for $102 million in an all-cash deal.
CCS is a lifestyle brand that appeals to teen-age skateboarders. CSS expects revenue over $80 million in 2009. The company, which was founded in 1985, is headed by Susan Van Arsdale. She will remain with the brand as managing director.
In an analyst report obtained by Thomson ONE Analytics, Robert Drbul of Barclays Capital notes numerous operational improvements on Foot Locker’s part, but gives the company a neutral rating, considering expected continued weakness in the consumer sector.
Chairman and chief executive officer of Foot Locker, Inc. Matthew D. Serra, said, “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.”
The New York-based athletic retailer has retained Barclays Capital as financial advisor in its acquisition of CSS. The deal is expected to close within 60 days.
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