Zumiez to acquire action sports retailer Blue Tomato
Zumiez Inc, the sports clothing and equipment retailer, has confirmed that it is to acquire European action sports retailer Blue Tomato.
The total purchase price for Blue Tomato will be €59.5 million and the agreement also provides for an additional €22.1 million of contingent future payments based upon achievement of performance related growth objectives during the next three years. The acquisition will be funded by Zumiez’s existing cash balances and is expected to complete by the end of the second quarter of 2012.
Founded by former European Snowboard champion Gerfried Schuller in 1988, Blue Tomato operates one of Europe’s largest action sports e-commerce websites which is available in 14 different languages. Additionally, the company operates five 5 retail stores in Austria.
In the year to 30 April 2012, Blue Tomato reported a 27% rise in sales to €29.4 million of which around 75% was generated through e-commerce.
Never Miss a Retail Update!Rick Brooks, chief executive officer of Zumiez Inc said: “Joining forces with Blue Tomato represents the next step in our strategic plan to build the leading global action sports retail business. Europe has a large, vibrant and growing action sports community, which Gerfried and his team have skillfully tapped into through a broad offering of authentic brands and products, a differentiated retail experience, and superior customer service. The similarities between each organization’s culture and operating philosophies give us great confidence we can successfully leverage our combined expertise to selectively expand Blue Tomato’s European footprint and strengthen our foundation to support future international development.”
Blue Tomato will continue to be headquartered in Schladming, Austria and the senior management team led by Gerfried Schuller will continue in their current roles.
Schuller added: “When I decided to sell the company I could not imagine a better fit for how we operate than Zumiez. We have built the leading action sports retail company in Europe and now we will be a part of the leading action sports retailer in the United States. Starting today, Zumiez and Blue Tomato are ready to begin a new journey to become the world’s leader in action sports retailing.”
Based on better than planned sales, Zumiez has increased its guidance and now expects 2012 second quarter total sales of $134 to $136 million, which includes approximately $2 million in sales of Blue Tomato assuming the acquisition is completed by 1 July.
