Dallas-based Collegiate Pacific signed a letter of intent to acquire Orlando Team Sports (OTS), a regional distributor of team sporting goods. The transaction is expected to close before the end of the month.
OTS president Michael McWeeney will join Collegiate Pacific’s executive management team and will continue to manage the business. Once the acquisition is complete, Collegiate’s sales team will number about 140.
“We intend to deploy the recently infused $40 million of new capital in a manner that will create more than $100 million in new revenues, and a significant expansion of profitability,” Collegiate Pacific CEO Michael Blumenfeld said in a statement. “The acquisition of OTS is the first step toward this goal. OTS meets our strict criteria of strong top-line growth; geographic compatibility with our existing sales force; and the ability to contribute to revenues and earnings on an immediate basis.”