SPORTS EQUIPMENT MERCHANT SPORT SUPPLY agreed to be acquired by an affiliate of ONCAP Management Partners, the mid-market private equity business of Onex Corp.
According to the deal, all outstanding shares of common stock of Sport Supply Group, formerly Collegiate Pacific, other than those held by certain participating stockholders, will be acquired for $13.55 per share in cash.
Chris Kampe, managing director with investment firm Tully & Holland, says the multiple ONCAP is paying for Sport Supply Group is a 7.2-times earnings before interest, taxes, depreciation and amortization (EBITDA).
Sport Supply Group has been trading at a comparatively low valuation, “which makes it an interesting value investment,” Kampe says.