Licensed sports memorabilia seller Dreams, Inc. has signed a definitive merger agreement with Fanatics, Inc., which also sells licensed sports memorabilia. Privately-held Fanatics will acquire all the outstanding shares of Dreams for $3.45 per share in cash for an aggregate transaction value of approximately $183 million, including $25 million of outstanding debt.
The offer represents a premium of 32.0% over Dreams’ closing share price of $2.61 on April 13, 2012, the last trading day prior to this announcement, according to a press release issued by Dreams.
Dreams President and CEO Ross Tannenbaum, Chairman Sam Battistone and other shareholders who collectively own approximately 35% of the outstanding shares of Dreams have each entered into voting and support agreements by which they have committed to vote in favor of the proposed merger transaction.
Fanatics CEO Alan Trager said in a press release the addition of Dreams will enable Fanatics to accelerate its investments in product assortment, mobile and e-commerce technology and a regional fulfillment infrastructure to better serve its customers and partners.
Fanatics provides e-commerce, merchandising, marketing and fulfillment services for professional sports leagues and teams, collegiate athletic programs and conferences, and other major sports properties.
Moments after the deal was announced, at least four law firms launched investigations into “possible breaches of fiduciary duty to current shareholders” because they believe Dreams failed to maximize shareholder value.