Sportsman’s Warehouse Holdings, Inc. to Purchase Two Field & Stream Stores in Erie, PA and Charleston, SC

Rhea-AI Summary

Sportsman’s Warehouse (SPWH) announced the acquisition of two Field & Stream locations in Erie, Pennsylvania, and Charleston, South Carolina, for $4.5 million, which will be funded by cash on hand. This strategic move aligns with the Company’s growth strategy aimed at expanding its market presence. Sportsman’s Warehouse has previously acquired 10 Field & Stream stores and plans to open nine additional stores this year, enhancing its footprint across 27 states with 107 existing locations.

Positive

• Acquisition of two Field & Stream locations for $4.5 million strengthens market presence.
• Previous acquisitions from Field & Stream have proven successful investments.
• Plans to open nine new Sportsman’s Warehouse stores this year indicate growth.

Negative

• None.

WEST JORDAN, Utah, Sept. 24, 2020 (GLOBE NEWSWIRE) -- Sportsman’s Warehouse Holdings, Inc. (“Sportsman’s Warehouse” or the “Company”) (Nasdaq: SPWH), www.sportsmans.com, announced today that it has entered into agreements with DICK’S Sporting Goods, Inc. (“DICK’S”) (NYSE: DKS) to purchase two Field & Stream locations.

The stores in Erie, Pennsylvania and Charleston, South Carolina will be rebranded as Sportsman’s Warehouse. The total purchase price of $4.5 million for inventory and assets will be funded through Sportsman’s Warehouse cash on hand. The transaction is expected to close in October, subject to customary closing conditions.

Sportsman’s Warehouse previously purchased 10 Field & Stream stores from DICK’S in late 2019 and early 2020. The transactions are consistent with the Sportsman’s Warehouse growth strategy of opportunistically expanding its store footprint and geographical reach.

“The first and second rounds of Field & Stream transactions proved to be exceptional investments for our company,” said Jon Barker, Sportsman’s Warehouse CEO. “The passionate and knowledgeable Field & Stream associates who joined Sportsman’s Warehouse were a critical component of the prior deals’ success. Therefore, we are very excited from both a human resources and financial perspective to add the two additional Field & Stream stores to our portfolio. The current transaction is similar to the previous ones, and we anticipate a strong reception to the Sportsman’s Warehouse brand as we become an integral part of the Erie and Charleston communities.”

The Company currently operates 107 Sportsman’s Warehouse stores in 27 states. Including the Field & Stream transaction announced today, the Company plans to open nine Sportsman’s Warehouse stores this year. The Company also opened its first Legacy Shooting Center earlier this year.

About Sportsman’s Warehouse Holdings, Inc.
Sportsman’s Warehouse is an outdoor specialty retailer focused on meeting the everyday needs of the seasoned outdoor veteran, the first-time participant, and everyone in between. We provide outstanding gear and exceptional service to inspire outdoor memories. For more information, visit www.sportsmans.com.

Investor Relations Contacts
Robert Julian, Chief Financial Officer
Caitlin Howe, Vice President, Corporate Development & Investor Relations
(801) 566-6681
investors@sportsmans.com

FAQ

What is the acquisition price for the two Field & Stream locations by Sportsman’s Warehouse (SPWH)?

The acquisition price for the two Field & Stream locations is $4.5 million.

When is the acquisition of the Field & Stream stores expected to close?

The acquisition is expected to close in October, subject to customary closing conditions.

How many Sportsman’s Warehouse stores are currently operational?

Sportsman’s Warehouse currently operates 107 stores across 27 states.

What is the growth strategy of Sportsman’s Warehouse (SPWH)?

The growth strategy of Sportsman’s Warehouse focuses on opportunistically expanding its store footprint and geographical reach.

Where are the newly acquired Field & Stream locations located?

The newly acquired Field & Stream locations are in Erie, Pennsylvania, and Charleston, South Carolina.