Kitbag sold for £11.5 million

The online sports retailer has been acquired by Fanatics Inc, an American-based licenced sports merchandise specialist.

As well as its ecommerce operation, Kitbag also manages a number of officially licensed club and sports organisation retail outlets, including online, physical stores and event retail, on a white label basis.

David Sugden, executive chairman of Findel, which owned Kitbag, says: “We believe this transaction represents a good outcome for all concerned.

“As Kitbag builds upon its strengthened position, it will benefit from the expertise and international presence in this marketplace that Fanatics offers.

“As for Findel, this deal will strengthen our balance sheet and significantly reduce our average working capital requirement, which is consistent with our ambition to focus our resources more fully on driving growth within our core home shopping and education businesses.”

Kitbag reported a pre-tax loss of £2.2 million for the year ended March 27, 2015, compared to a loss of £14.9 million in 2014.

The company’s gross assets as of March 27, 2015 were £33.7 million.

The sale is expected to produce a marginal loss upon disposal for Findel.

Sports Direct, which has a stake in Kitbag, failed in its bid to buy the company last year.

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