BIRMINGHAM, Ala. and EDISON, N.J., June 8 /PRNewswire/ -- Just For Feet,
Inc. (Nasdaq: FEET), an operator of both large format superstores and
smaller specialty stores of brand-name athletic and outdoor footwear, and
Sneaker Stadium, Inc. announced today the signing of a letter of intent
pursuant to which Just For Feet will acquire Sneaker Stadium. Sneaker
Stadium is a privately held athletic retailer with 38 superstores, backed by
a group of private equity investors led by Thomas H. Lee Company ("THL").
Pursuant to the terms of the letter of intent, Just For Feet will assume
$43.0 million of existing Sneaker Stadium bank debt. In addition, should
Sneaker Stadium attain future financial targets, an additional payment
totaling up to $31.0 million may be paid to creditors on or after April 30,
2002. The transaction is expected to be neutral to earnings for the
remainder of this fiscal year and accretive to earnings in the fiscal year
ending January 31, 2000.
Harold Ruttenberg, Chairman, President and Chief Executive Officer of Just
For Feet, commented, "We are extremely pleased with the proposed acquisition
of Sneaker Stadium and believe it presents an exciting opportunity for our
customers, employees, and shareholders. Sneaker Stadium provides an
excellent platform in the key Northeast and Mid-Atlantic states and
accelerates our strategic national expansion program by several years. With
our existing infrastructure, Just For Feet is in an excellent position to
take advantage of the significant potential synergies related to the
transaction." Upon completion of the transaction, Just For Feet will
operate 124 company-owned superstores, a superstore base increase of 44%,
with the intention to convert Sneaker Stadium stores to the Just For Feet
name and format.
David Bloom, President and Chief Executive Officer of Sneaker Stadium,
stated, "This combination strengthens both parties. Just For Feet will now
enjoy a substantial presence in the Northeast and Mid-Atlantic, and of
course the Sneaker Stadium stores will receive the benefit of its successful
operating formulas."
Separately, and concurrently with the acquisition, THL and certain
affiliated investors will make an equity investment in Just For Feet. THL
will be entitled to designate a member of Just For Feet's Board of
Directors. Renny Smith, Managing Director of Thomas H. Lee Company and a
member of the Board of Directors of Sneaker Stadium, commented, "The sale of
Sneaker Stadium to Just For Feet further enhances its position as a leader
in athletic footwear retailing. This is a great strategic step for both
companies, and we are delighted to have the opportunity to invest additional
capital in this retail concept."
The letter of intent has been approved by the Boards of Directors of both
companies. Closing of the transaction is subject to the satisfactory
completion of due diligence, definitive documentation, the expiration of the
Hart-Scott-Rodino waiting period and the approval of Sneaker Stadium's
creditors. Merrill Lynch & Co. and NationsBanc Montgomery Securities LLC
are acting as financial advisors to Just For Feet in connection with this
transaction.
Just For Feet, Inc. operates both large format superstores and smaller
specialty stores which specialize in brand-name athletic and outdoor
footwear. The Just For Feet superstores feature a full line of sports
related apparel, a high level of customer service and a distinctive
combination of entertainment elements creating an exciting shopping
experience. The company operates 86 company-owned and eleven franchised
Just For Feet superstores in 22 states and Puerto Rico, spanning every state
coast-to-coast in the southern half of the United States. Just For Feet
also operates 102 company-owned and 48 franchised specialty stores in 22
states and Puerto Rico.
Sneaker Stadium, Inc., based in Edison, New Jersey, currently operates 38
large format superstores, located primarily in the Northeast and
Mid-Atlantic states.
THL is a Boston-based private equity firm focused on identifying and
investing in growth companies. Founded in 1974, THL currently manages over
$5 billion of committed capital. THL has substantial experience investing
in successful, high growth retailers, including General Nutrition Co.,
Petco, Finlay Fine Jewelry, and Eye Care Centers of America.
Certain matters discussed within this press release may constitute
forward-looking statements within the meaning of the federal securities law.
Although Just for Feet, Inc. believes the statements are based on reasonable
assumptions, there can be no assurance that these expectations will be
attained. Actual results and timing of certain events could differ
materially from those projected in or contemplated by the forward-looking
statements due to a number of factors, including, without limitation,
industry trends, merchandise trends, competition, and the ability to obtain
financing, as well as other risks outlined from time to time in the filings
of Just For Feet, Inc. with the Securities and Exchange Commission.
Just For Feet will hold a conference call today to discuss the proposed
acquisition at 11:00 a.m. EST. To participate in the call please call
American Teleconferencing at 1-800-810-0924. A playback recording is
available at 2:00 p.m. EST and 5:00 p.m. EST by calling 1-800-289-0493.
Just for Feet contact: Mr. Harold Ruttenberg, Chairman, President and Chief
Executive Officer, or Mr. Eric L. Tyra, Executive Vice President -- Finance
and Chief Financial Officer, 205-408-3000. Contact for Sneaker Stadium and
THL: Mr. Greg Miller, 914-834-1868.
/CONTACT: Harold Ruttenberg, Chairman, President and Chief Executive
Officer, or Eric L. Tyra, Executive Vice President -- Finance and Chief
Financial Officer, both of Just For Feet, 205-408-3000; or Greg Miller,
914-834-1868, for Sneaker Stadium and Thomas H. Lee Company/
06:58 EDT
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