New York-based investment firm Kohlberg Kravis Roberts & Co L.P. has entered into an agreement to purchase Katy-based Academy Sports + Outdoors.
KKR and Academy today jointly announced they have entered into a definitive purchase agreement.
Under terms of the deal, KKR will acquire Academy Sports + Outdoors with current owners the Gochman family retaining a minority ownership stake.
Financial terms were not disclosed.
Academy is one of the nation’s largest sporting goods and outdoor stores with 131 locations throughout 11 states in the southeast United States. The company currently has approximately 16,000 employees and generated more than $2.7 billion in revenue in 2010.
“We are excited to announce this agreement with KKR and we are confident this transaction is the absolute right thing for Academy’s associates, partners and customers. This transaction with KKR will help accelerate Academy’s continued growth and provide even greater flexibility to achieve our strategic goals,” said Rodney Faldyn, President of Academy Sports + Outdoors. “KKR understands our industry and our business well, and will be a tremendous partner as we build upon our leadership position, continue to implement our strategic plan and continue to exceed the needs of our customers. Our success is driven by the ongoing efforts of our talented associates, and I thank them for their continued hard work and dedication. We look forward to working with KKR to quickly complete the transaction.”
Mike Calbert, head of KKR’s retail investment team, called Academy an “outstanding company with a rich history and an unmatched commitment to its associates, partners and customers.”
“We are long term investors who look for leading retail franchises and Academy Sports + Outdoors is a perfect fit. The Gochman family has built an unparalleled business and we look forward to continuing in their tradition of providing great value, outstanding service and an unrivaled shopping experience for its customers,” Calbert said. “We are excited to partner with the management team, the Gochmans and all the associates of Academy in accelerating the company’s future growth.”
When the deal is finalized, Faldyn will continue to serve as president of Academy Sports + Outdoors and will also assume the additional responsibilities of chief executive officer.
The transaction is expected to close in six to eight weeks, subject to customary closing conditions.