Dallas-based Collegiate Pacific has agreed to swap stock to acquire the 47% it doesn’t already own in sporting goods and physical education equipment marketer Sport Supply Group for $6.74 a share. On Sept. 7, Sport Supply closed at $5.95 a share.
Collegiate, which purchased a majority interest Sport Supply in July, expects to close the deal toward the end of 2005.
In other news, Collegiate Pacific reported that annual net income roughly doubled to $3.8 million, from $1.9 million last year. Net sales climbed nearly threefold, to $106.3 million from $39.6 million, and operating profit more than doubled, to $7.6 million from $3.2 million.
Michael Blumenfeld, plans to retire as CEO of Collegiate Pacific by the end of next fiscal year, though he will be chairman of the newly combined company. Sport Supply CEO Adam Blumenfeld will be its chief executive.