PARIS — PPR’s mail-order division Redcats said Thursday it has signed an agreement to sell the sports and leisure activities of its U.S. division to Northern Tool + Equipment for an enterprise value of $215 million.
The Burnsville, Minn.-based retailer of tools and power equipment will take control of online outdoor gear and clothing company The Sportsman’s Guide Inc. and online golf retailer The Golf Warehouse Inc., as PPR sheds its retail activities to focus on apparel and accessories in the luxury and sport-lifestyle segments.
“The Sportsman’s Guide, The Golf Warehouse and Northern Tool + Equipment would continue to run as stand-alone retail brands and businesses, while benefiting from common commercial opportunities, synergies and large economies of scale,” PPR said.
The transaction, which is subject to customary conditions including approval from competition authorities, should be finalized before the end of the year.
PPR group managing director Jean-François Palus said recently that the piecemeal disposal of Redcats was moving ahead as expected, and would likely begin with the sale of its U.S. operations, in addition to children’s brand Vertbaudet and family brand Cyrillus.
“The discussions regarding the U.S. operations are well advanced, and the discussions regarding the children’s and family brands have been initiated,” he said during a conference call on Oct. 25 following the publication of PPR’s third quarter results.
Palus added that the information memorandums for its Nordic brands — Swedish-based mail order firm Ellos AB and home textile specialist Jotex — were being finalized. “The process will be triggered in the middle of the month of November for a conclusion in the course of the first quarter, and then the process for La Redoute and the French brands will be triggered after that,” he said.