Specialty athletic retailer Foot Locker (NYSE:FL) announced yesterday that it has received approval from Germany's Federal Cartel Office to complete its previously announced $94 million acquisition of Runners Point from private equity firm Hannover Finanz, along with its CEO and CFO. The approval was the last hurdle in completing the transaction and now both companies anticipate the deal to close in early July.
Runners Point operates more than 200 stores under its eponymous banner as well as through Sidestep and an online storefront called Tredex. It recorded revenues of around $254 million in 2012.
When the deal was announced last month, Foot Locker Chairman and CEO Ken C. Hicks said: "This acquisition will enhance our position in Germany, the strongest economy in Europe, and also provide us with additional banners to further diversify and expand our European business. We also intend to leverage Tredex's strong digital capabilities to accelerate growth in our own developing European e-commerce business."
The Fool's Rich Smith suggested the specialty retailer was getting a good price for the German retailer, noting the purchase price represented about 0.4 times its sales whereas Foot Locker's own shares sold closer to 0.9 times sales.
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