Dallas-based Sport Supply Group and Collegiate Pacific on Nov. 22 terminated their Sept. 7 merger agreement. But that doesn’t mean the two companies have severed ties. Instead, Collegiate Pacific bought 1.66 million shares of Sport Supply for $5.55 per share. The shares amount to about 19% of Sport Supply’s outstanding stock and increases Collegiate Pacific’s stake in its one-time rival to 72% from 53%.
Calls to both companies, which sell sports equipment to schools, teams, and institutions, were not returned at press time.
Collegiate Pacific has agreed to reimburse Sport Supply Group for all fees and expenses, up to $350,000, that the latter incurred in connection with the merger agreement. Collegiate Pacific expects to take a one-time charge related to the cancelled acquisition of $500,000 for its second quarter, which ends Dec. 31.
“Collegiate Pacific and Sport Supply will continue upon their previously announced track of maximizing operating synergies and savings between the companies,” Adam Blumenfeld, president of Collegiate Pacific, said in a statement. “This increased ownership position only heightens our enthusiasm to leverage the marketing, manufacturing, sales, and purchasing talents within our respective companies.”