TORONTO and MONTREAL, Aug. 12, 2013 /CNW/ - FGL Sports Ltd. (FGL
Sports), a division of Canadian Tire Corporation, Limited (TSX:CTC)
(TSX:CTC.a), announced today that it has completed the acquisition of
Pro Hockey Life Sporting Goods Inc.
"Pro Hockey Life offers the best hockey products available in the world
and gives us an even wider range of options for customers - from your
first skates at Canadian Tire, to high performance hockey with Sport
Chek and Sports Experts and now elite hockey equipment from Pro Hockey
Life," said Michael Medline, President of FGL Sports and Executive Vice
President of Canadian Tire Corporation. "We are proud to support
Canada's game through our relationship with Hockey Canada and the
Canadian Olympic Committee, our commitment to helping kids in need
through our Jumpstart Charity and our dedication to hockey players and
teams across the country."
FGL Sports purchased Pro Hockey Life, a private company, for $85
million. Pro Hockey Life is a premier sports retailer with 23 urban,
high-end hockey stores operating in five provinces across Canada. It
has annual revenue of approximately $95 million. Pro Hockey Life will
operate as a banner under FGL Sports, joining super brands such as
Sport Chek and Sports Experts.
The acquisition will bolster FGL Sports' capacity to provide Canadians
with an unparalleled selection of hockey equipment, knowledgeable staff
and excellent customer experience. The deal will also provide FGL
Sports with the ability to serve a broader cross section of hockey
players of varying ages and skill levels.
As at closing, the Competition Bureau had not issued a clearance, in the
form of an advance ruling certificate or no-action letter, in respect
of the acquisition. The Competition Act permits the Commissioner of
Competition to make an application to the Competition Tribunal in
respect of a merger of this type for a period of one year after its
implementation.
FORWARD-LOOKING STATEMENTS
This document contains forward-looking information that reflects
management's current expectations related to the proposed acquisition.
Forward-looking statements are provided for the purposes of providing
information about management's current expectations and plans and
allowing investors and others to get a better understanding of our
financial position, results of operation and operating environment.
Readers are cautioned that such information may not be appropriate for
other circumstances.
All statements other than statements of historical facts included in
this document may constitute forward-looking information, including but
not limited to, statements concerning the expected benefits of the
proposed acquisition, such as growth potential and market profile; the
competitive ability and position of Canadian Tire, FGL Sports and Pro
Hockey Life following the proposed acquisition, if completed; the
expected timing of the proposed acquisition, if completed; and
management's expectations relating to possible or assumed future
prospects and results, our strategic goals and priorities, our actions
and the results of those actions and the economic and business outlook
for us. Often but not always, forward-looking information can be
identified by the use of forward-looking terminology such as "may",
"will", "expect", "believe", "estimate", "plan", "could", "should",
"would", "outlook", "forecast", "anticipate", "foresee", "continue" or
the negative of these terms or variations of them or similar
terminology. Forward-looking information is based on the reasonable
assumptions, estimates, analysis and opinions of management made in
light of its experience and perception of trends, current conditions
and expected developments, as well as other factors that management
believes to be relevant and reasonable at the date that such statements
are made.
By its very nature, forward-looking information requires us to make
assumptions and is subject to inherent risks and uncertainties, which
give rise to the possibility that the Company's assumptions may not be
correct and that the Company's expectations and plans will not be
achieved. Although the Company believes that the forward-looking
information in this document is based on information and assumptions
that are current, reasonable and complete, this information is
necessarily subject to a number of factors that could cause actual
results to differ materially from management's expectations and plans
as set forth in such forward-looking information for a variety of
reasons. Some of the factors - many of which are beyond our control and
the effects of which can be difficult to predict - include (a) the risk
that the Pro Hockey Life business will not be integrated successfully;
(b) the possibility that the anticipated benefits and synergies from
the proposed acquisition cannot be realized or may take longer to
realize than expected; (c) the ability of Canadian Tire, FGL and Pro
Hockey Life to retain and attract key personnel and maintain
relationships with customers, suppliers and other business partners, as
well as our financial arrangements with such parties; (d) credit,
market, currency, operational, liquidity and funding risks generally,
including changes in economic conditions, interest rates or tax rates;
(e) risks and uncertainties relating to information management,
technology, supply chain, product safety, changes in law, competition,
seasonality, commodity price and business disruption and (f) the
possibility that the Commissioner of Competition may seek an order from
the Competition Tribunal for remedies to address competition concerns.
We caution that the foregoing list of important factors and assumptions
is not exhaustive and other factors could also adversely affect our
results. Investors and other readers are urged to consider the
foregoing risks, uncertainties, factors and assumptions carefully in
evaluating the forward-looking information and are cautioned not to
place undue reliance on such forward-looking information.
For more information on the risks, uncertainties and assumptions that
could cause the Company's actual results to differ from current
expectations, please refer to the "Risk Factors" section of our Annual
Information Form for fiscal 2012 and our 2012 Management's Discussion
and Analysis, as well as the Company's other public filings, available
at www.sedar.com and at www.corp.canadiantire.ca.
ABOUT FGL SPORTS
Part of the Canadian Tire Family of Companies since 2011, FGL Sports
Ltd. (formerly The Forzani Group Ltd.) is Canada's largest national
retailer of sporting goods. Offering a comprehensive assortment of
brand-name and private-brand products, FGL Sports operates stores from
coast-to-coast under the following corporate and franchise banners:
Sport Chek, Sports Experts, Atmosphere, Hockey Experts, National
Sports, Intersport, and S3. For more information, visit www.FGLSports.com.
Canadian Tire Corporation, Limited (TSX:CTC.a) (TSX:CTC) is a Family of
Companies that includes FGL Sports, Canadian Tire Retail, Partsource,
Gas+, Mark's, Canadian Tire Financial Services, and Canadian Tire
Jumpstart Charities. For more information, visit Corp.CanadianTire.ca.
SOURCE CANADIAN TIRE CORPORATION, LIMITED
