(PR NEWSWIRE) Sport Supply Group Announces Amended 13D Filings by Oaktree
Sport Supply Group Announces Amended 13D Filings by Oaktree Capital Management
and Emerson Radio Corp.
Oaktree Letter of Intent Provides for Acquisition of Control Block From
Emerson Radio Corp. at Premium to Market
Oaktree to Beneficially Own 46% of Sport Supply Group
DALLAS, Aug. 5 /PRNewswire/ -- Sport Supply Group, Inc. (NYSE: GYM) today
announced that the OCM Principal Opportunities Fund L.P. ("OCM"), an
investment fund managed by Oaktree Capital Management, LLC and Emerson Radio
Corp. (Amex: MSN) ("Emerson") have each filed an amended 13D with the
Securities and Exchange Commission with respect to Sport Supply Group.
According to the amended 13Ds, OCM has signed a letter of intent with Emerson
to acquire 2,269,500 shares of Sport Supply Group common stock and warrants to
purchase an additional 1,300,000 shares of Sport Supply Group common stock
from Emerson and a significant shareholder of Emerson. After giving effect to
the transaction, OCM would beneficially own approximately 46% of Sport
Supply's issued and outstanding common stock. Sport Supply Group currently
has approximately 7,252,000 shares of common stock outstanding.
Completion of the acquisition by OCM is subject to a number of conditions,
including without limitation OCM's satisfaction with its pre-acquisition due
diligence review of Sport Supply Group, the execution of mutually satisfactory
definitive agreements among the parties, regulatory and court approvals and
receipt by Emerson's Board of a fairness opinion. The OCM filing indicates it
intends to retain senior management as part of the acquisition.
Commenting on the proposed transaction, John P. Walker, President, stated,
"Upon consummation of this transaction, OCM will become the largest
shareholder of Sport Supply Group with its 46% beneficial ownership interest.
OCM's strategy and track record is to capitalize on undervalued companies and
support growth initiatives with additional capital investment alternatives.
As a major shareholder of Sport Supply Group prior to this announcement,
representatives from OCM and Sport Supply Group have held several meetings to
discuss Sport Supply Group's long-term growth opportunities and strategic
goals. OCM's interest in making a significant investment in the stock of this
Company at a premium to the current market endorses management's belief that
Sport Supply Group's long term value as an efficient and effective
manufacturer, marketer and distributor of institutional sporting goods is yet
to be realized. We look forward to working with OCM to enhance the value for
all our shareholders of Sport Supply Group and leverage additional
opportunities in our industry."
Mr. Stephen Kaplan, Principal of OCM stated, "We are pleased to have
reached an agreement to buy the stock of Sport Supply owned by Emerson and
look forward to closing the transaction upon satisfaction of the relevant
conditions. We believe the Company is well positioned for both internal
growth and to be a major participant in the consolidation of the institutional
sporting goods industry."
This news release, other than the historical information, contains forward
looking statements that involve risks and uncertainties detailed from time to
time in the Company's filings with the Securities and Exchange Commission,
including the Company's reports on Form 10 K and Form 10 Q. Actual results
may vary materially.
SOURCE Sport Supply Group Inc.
-0- 08/05/99
/CONTACT: John P. Walker, President, 972-406-7108, or Michele Girard,
Shareholder Relations, 972-406-7166, both of Sport Supply Group Inc./
/Web site: sportsupplygroup.com
(GYM MSN)
CO: Sport Supply Group Inc.; OCM Principal Opportunities Fund L.P.; Oaktree
Capital Management, LLC; Emerson Radio Corp.
ST: Texas
IN: REA SPT
SU: TNM |
